The UK is undoubtedly facing a housing crisis, with millions struggling to find affordable homes.
The government’s plan is to build affordable and social housing to plug the gap.
In its manifesto, Labour pledged to restore mandatory housing targets stating that, whilst creating jobs across England, there was an aim to build 1.5 million new homes over the next parliament.
On 26 January 2025, the government announced an extension of the existing Home Building Fund for this year providing up to £700 million of vital support to SME housebuilders, supporting the delivery of around 12,000 additional homes. However, 12,000 is merely a dent in the overall 1.5million target.
Recently, Angela Rayner, Deputy Prime Minister and Secretary of State for Housing Communities and Local Government, stated that the plans were a way of dealing with the housing crisis, and a driver for economic growth. While Labour’s goals are commendable and ambitious, one critical issue remains unaddressed in these plans - the acute shortage of skilled construction workers in the UK.
In its manifesto, Labour directed towards training and apprenticeships, but these initiatives are likely to take years. Once the initiatives are in place, it will take even longer to attract young people to the construction sector due to the appeal of alternative career routes.
This has led some to the conclusion that Labour’s ambitious goals are perhaps unrealistic as the execution of the plan clearly relies on sufficient workforce. Certainly, with no immediate or short-term UK-based solution seeming likely, the timeframe and scale of the plan mean that a significant influx of skilled migrant workers will be needed if the government is to achieve its target.
Construction industry opinion
The National Federation of Builders (NFB) criticised Labour’s goals as unachievable due to there being a shortage of more than 200,000 construction workers in the UK. The shortage has been compounded by a decline in apprentices and the ageing native workforce.
The Home Builders Federation (HBF) echoes these concerns, stating that skills shortages, an ageing workforce and Brexit are among the key issues. HBF told the BBC the UK “does not have a sufficient talent pipeline” of builders to meet Labour’s objective.
Similarly, David Thomas, head of housebuilding firm Barratt Redrow has said Labour’s vow to build 1.5 million homes during this parliament is not possible due to a severe skills shortage, telling the BBC that Labour would need to “revolutionise the market, revolutionise planning, revolutionise methods of production” to achieve their homebuilding target, adding that “this is a national crisis”.
Immigration policies
So, what is the answer? The construction industry has been grappling with skills shortages for years. There is undoubtedly a UK-wide reliance on foreign labour to meet key economic demands. Indeed, many construction-related roles appear on the immigration salary list.
The benefit of an occupation being included on the immigration salary list is that it allows employers to recruit migrants on skilled worker visas with a salary below the general salary threshold.
The skilled worker visa route allows successful applicants to stay in the UK for up to five years. However, there is not a great uptake by construction specialists, according to the NFB. A survey conducted by Building magazine found that one of the main barriers to using the skilled worker visa route was lack of employer familiarity with the system. Bureaucratic burden, minimum salary thresholds, lack of options for lower skilled roles and the costs associated with sponsoring migrant workers were also reasons cited.
As a solution, the NFB has proposed a three-to-five-year construction visa alongside a “one for one” scheme: for every overseas worker employed, a British worker would be funded or trained.
Given the dire situation, it would make sense for the government to consider potential options put forward by stakeholders in the field, including expanding immigration routes for the skilled construction workers it needs to attract to achieve its housing goals.
The housing plan is a step in the right direction and Labour appears to be committed to following through on promises in that area. Ultimately, though, the success of such ambitious proposals hinges on addressing the skills shortage.
The current domestic workforce is overburdened, ageing and the sector is struggling to attract new talent. The government must address the skills shortage head-on.
How can we help you?
Our immigration solicitors can assist with global mobility, including recruitment of skilled migrant workers. We can also help you to ensure that your business is compliant with relevant immigration rules.
For advice and help with immigration queries, contact carolyn.bowie@weightmans.com in the first instance.
