Skills shortage jeopardising pledge to build 1.5 million homes, report warns

A critical shortage of skilled workers is jeopardising the Government’s pledge to build 1.5 million new homes by 2029, according to research.

Skills development organisation City & Guilds surveyed employers, training providers and employees, finding 76% of construction firms are struggling to recruit the skilled people they need, with 84% agreeing the industry is suffering from critical skills shortages.

The latest outlook from the Construction Industry Training Board suggests the industry needs to recruit 239,300 workers by 2029 to be able to meet the projected demand for the 1.5 million homes target.

More than half (54%) of employers do not think the sector has the workforce it needs to meet this target, with the same percentage also putting into doubt the sector’s ability to deliver net zero housing goals.

Kirstie Donnelly, chief executive of City & Guilds, said: “We can’t build 1.5 million homes without the people to deliver it. We urgently need to reset how we attract, train, and upskill talent across the construction sector, with flexible routes, smarter investment, and collaboration between industry, education and Government.

“With the Government signalling a clear intention to reduce reliance on overseas workers, investing in and nurturing skills isn’t optional – it’s critical.”

Jambu Palaniappan, chief executive at Checkatrade, said: “The vision of modern, energy-efficient homes that are fit for 21st-century Britain will remain out of reach unless we tackle the critical trade skills gap head-on.

“Government is taking some important steps to address the problem and industry needs to play its part too. Checkatrade is piloting initiatives across the country, from boosting construction apprenticeships through to helping existing trades build new skills as more consumers look to make their homes greener and cheaper to run.”

Published: 03/07/2025 by Radio NewsHub