Tag: Skills

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Labour must learn from success in addressing the housing skills shortage

The Government’s ambitious 1.5m homes housing target was widely welcomed by the house-building industry and NHBC. While the Government moves forward to address the barriers posed by the planning system through its Planning and Infrastructure Bill, another pressing issue threatens the target: the industry skills shortage.

Estimates of the number of new construction recruits required vary, with the Construction Industry Training Board (CITB) placing the figure at 239,000 needed by 2029 to meet demand. Calculations factoring in the additional workforce requirements of constructing the new towns initiative yield larger figures. What we know for certain is that the figure is large and current apprenticeship throughput won’t  produce the additional skilled workers to deliver the numbers needed to reach 1.5m homes.

Growing the construction workforce faces several challenges for both the supply and demand for skills. The 1.5m homes target runs parallel to government commitments on retrofit and national infrastructure, whose workforce is generally drawn from the same pool. At the same time, the make-up of the workforce continues to change with the proportion of workers aged 50 and over increasing from around one in four in 2005 to one in three by 2024.

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While our need for new skilled construction workers increases, firms are struggling to find the skills necessary to meet extant demand, leading to delays and rising costs. The Federation of Master Builders (FMB) State of Trade Survey from H1 2025 found that 61% of respondents reported being  affected by a lack of skilled tradespeople, 49% said that this caused job delays and 23% said it had led to job cancellations. 

Importantly for homebuyers, sub-standard skills and shortages may impact quality. When builders are forced to settle for less skilled tradespeople, there is a heightened risk that quality suffers and the number of defects increase.

Data compiled in the NHBC Foundation’s recent report Maintaining quality in the design and construction of 1.5m homes illustrates the historic relationship between the volume of home completions and customer satisfaction, with satisfaction tending to decrease as volume increases. Ensuring an adequate supply of skills will be crucial in breaking that trend.

Unfortunately, the existing skills system fails to deliver the numbers necessary to meet that need. According to Department of Education data, approximately 24,000 construction apprenticeships were started in England in the most recent year.  However, once you account for achievement rates, only around half of these apprentices complete their courses.

Perceptions of construction are often cited as the cause for the struggling workforce but 24,000 apprenticeship starts is a sizeable number. We need to look more closely at why these apprentices are dropping out of their courses, failing to meet the required standard or deciding not to enter the industry at the end of their course.

At NHBC we believe that we have managed to square that circle. In 2020, we launched our first training hub in Tamworth, initially focusing on bricklaying Level 2 qualifications. This training hub took a unique approach to construction training, guided by the needs of house builders. The hub mimics real site conditions, consisting of an open space with a large slab of concrete, covered only by a canopy and surrounded by cabins with teaching rooms and a canteen facility.

Apprentices begin their learning with a five-week block at the hub, as opposed to the usual day release, starting and finishing at the times they would on a real site. They are required to wear the Personal Protective Equipment (PPE) they would on a construction site and follow the same safety protocols. This differs from traditional apprenticeships, where traditional providers (understandably) are restricted by the size of their estate.

Our hubs do not have the same restrictions. The Tamworth hub was set up on land on an existing Redrow development as it was being constructed. The ‘pop-up’ nature of the hubs allows us to choose locations that replicate the site experience as closely as possible.

After spending weeks learning essential skills, apprentices go on site for ten weeks with the ability to confidently lay bricks and contribute from day one. This allows them to build relationships, take on responsibility and makes an apprentice a more attractive option for employers.

This approach has yielded exciting results. Our completion rate is an industry-leading 80-90%, with the majority of our apprentices continuing to work with their employers. If these figures were replicated across the industry thousands more skilled tradespeople would be entering the construction sector every year.

NHBC’s initial success at Tamworth prompted the opening of an additional three hubs in Cambridge, Newcastle and Hull.

NHBC is a non-profit distributing company whose core purpose is to raise standards in house building. This has enabled us to reinvest £100m towards the creation of 12 larger multi-skill hubs, each two thirds of the size of a football pitch and offering broader trades needed within the local area such as bricklaying, groundwork and site carpentry, with timber fame erection planned for later hubs. Once all 12 hubs are open, we expect to have capacity for 3,000 apprentice starts every year.

Yet challenges persist; the industry would benefit greatly from a more flexible growth and skills levy and small employers still struggle to engage with the skills system, but the hub model has potential to be replicated across a swathe of trades and revolutionise construction skills.

Our team stands ready to share our expertise with any organisation wishing to replicate our success.

David Campbell is the Chief Operating Officer of NHBC, the UK’s largest new homes warranty and insurance provider. NHBC is a non-profit distributing company whose core purpose is to raise standards in house-building.

You can hear more from David Campbell at Labour Housing Group’s fringe at Labour Party Conference in partnership with NHBC: How can the Labour Government solve the housing skills shortage? (Monday 29th: 17:00 – 18:00)

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Blog Post Class of 2024

Can building homes help Labour beat populism? 

Image by Mikael Blomkvist licensed under Pexels

Populist politics thrive when people feel the system is not working for them. Nowhere is this clearer than in the housing system, which has failed too many for too long. Over 1.3 million homes currently sit empty, rents are at record highs, and many young people are forced to live with their parents well into adulthood. If Labour is to win against the populist Right, we must show that we can make the basics work for ordinary people. And being able to put a warm, safe, affordable roof over your head is surely the most of basic of rights.

Labour’s commitment to building 1.5 million homes within this Parliament represents more than just housing policy – it is a political opportunity. It is a chance to demonstrate that we can deliver real change. To show that we can tackle the cost-of-living crisis, drive economic growth, and equip a new generation with the skills they need to thrive. And in doing so we can undercut the populist playbook, help to repair some of the lost faith in mainstream politics, and provide the job opportunities that give people hope for the future.

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We know the previous Conservative government failed to invest in council or social housing, failed to make the case for housebuilding, and failed to align our education system with the skills needed to build the homes we so desperately require. Not because the challenge was insurmountable, but because of a lack of political will. The consequences of this are stark. In 1991, 67 per cent of 23 to 34-year-olds in the UK owned a home. By 2024, that figure had fallen to around 15 per cent. Meanwhile, the private rented sector became unbalanced against renters, and our social housing stock was decimated from the Thatcherite Right to Buy policies of the 1980s. 

Housing was never a problem that was going to be solved with a few tweaks. It needed a bold solution, and thankfully the new Labour government is committed to delivering that through both practical support and strong political messaging. I frequently say that skills underpin the ability of Labour to meet all its five missions in Government, but nowhere is this more obvious than in the goal to build 1.5 million new homes to finally deal with the supply problem that has characterised the housing crisis for decades.

So, what is Labour doing to support construction skills? 

Firstly, we have allocated funding for 120,000 extra educational places for young people to gain construction skills. Providing opportunities for young people who are not academic, and holding technical training and qualifications in the same esteem as university, was an important pillar of Keir Starmer’s messaging in the lead up to the General Election. I was delighted to hear how much he valued technical education when announcing the skills mission at Mid-Kent College in my constituency last year, drawing on his father’s employment experience as a toolmaker. There is still more to do to improve people’s attitudes towards technical skills and knowledge of the career opportunities they can lead to. The Government’s planned overhaul of the National Careers Service, which will be more integrated with local Job Centres, gives us the opportunity to do this but we must start reaching young people earlier – ideally in primary school.

We have also created Skills England, a new body within the Department for Education, that I hope will be more nimble and responsive to business needs, and which will have clear Ministerial accountability to the Education Secretary. This link to business is important – we must make sure that we are giving people the training that will lead to a job at the end of it. Thankfully, our other reforms, such as scrapping the failed Apprenticeship Levy, will make it easier for businesses to engage with our currently complex and fragmented skills system. More details will follow from Ministers about how the new Growth and Skills Levy, which replaces the Apprenticeship Levy, will work. But we do know that it will be designed to be simpler and more flexible to business needs, two principles which have been hugely welcomed by employers, skills providers, and trade bodies, and particularly those in the construction sector.

I am particularly keen to see that the Growth and Skills Levy works for Small and Medium Enterprises (SMEs). In Medway, which includes my Rochester and Strood constituency, over ninety per cent of all businesses are SMEs. This is a common situation outside our major cities. I know from my visits to local businesses and roundtable discussions that many SMEs do not engage with the apprenticeship system, although they would like to, because they have had bad experiences in the past trying to navigate it. While larger businesses have Human Resource departments that help with this, smaller businesses struggle both with the paperwork involved and the loss of a staff member for extended periods from the “shop floor” during training. It is imperative that Labour’s new system works for all types of businesses. Otherwise, areas like mine, whose economies and labour markets are dominated by SMEs, will not be able to see that extra money for construction skills translate into local jobs and economic growth.

It is giving people opportunities and a better quality of living that will help us tackle the threat of populist parties like Reform. The skills policies I have outlined above, combined with the £3.9bn per year for the next decade allocated to a new Affordable Homes Programme in the Comprehensive Spending Review, are major steps towards achieving that goal within this parliament. But this is about more than policy – it is also about persuasion. We must take the British people on a journey with us. We must win the argument that housebuilding is not just necessary – it is the right thing to do. It is right for jobs, for growth, for small and medium-sized businesses, and for the future of our communities.

Many of the UK’s think-tanks are analysing the recent local elections results that saw Reform do so well. One of the correlations with a high Reform turnout was a low percentage of people with degrees. One hypothesis is that opportunities for non-graduates are poor, and that this translates into a lack of social mobility and feelings that the system does not work for them. Well paid, skilled jobs, like those in construction, are a straightforward way that Labour can tackle this. Doing so will not only provide the opportunities that people from non-graduate backgrounds want and need, it will also help us build the decent quality homes that many people feel have fallen out of reach. By tackling these twin concerns around jobs and homes, we can start to make people feel the system is working for them again thanks to a Labour government.

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10-year plan for housing Blog Post

What does the housing sector need from Government to deliver on their long-term ambitions for housing?

As Director of Policy and Public Affairs at The Housing Forum I work with organisations from across the whole of the housing sector – from construction companies and architects, to housebuilders, housing associations and local authorities. I also keep abreast of housing policy – helping our members understand new developments and ensuring the government understands the needs of the sector.

The last year has been a fascinating time to have one foot in industry and one in policy circles. On the policy side, it’s the most positive I’ve ever seen. The new government has come in with huge enthusiasm to tackle the housing problems in the country, a willingness to burn political capital in doing so and – above all – a willingness to listen. It’s been greeted with pretty much unanimous enthusiasm from across the sector too. Yet at the same time, in the sector itself, the financial challenges are huge. After 15 years of high house price growth, the market sector is struggling with the slow-down alongside a sharp rise in construction costs, whilst the social housing sector struggles also with increased costs of building safety and maintaining existing homes, rising costs of borrowing and grant rates that just aren’t stacking up to support the building of much-needed new social housing.

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So what does it need to do to turn this tough situation around and build the new homes, including social housing, that we need?

The first and biggest answer has to be funding. Keen to establish themselves as fiscally responsible, Labour came to power making few promises that involved any spending – and there have been no major funding announcements for housing as yet, though the sector awaits the Spring Spending Review with trepidation. The next Affordable Homes Programme will be the main source of funding for developing new social housing. Grant rates need to be high enough to bridge the gap between construction and land costs, and the amount that landlords can borrow against future rental income. If the government also wants to sector to prioritise social rented housing over other options (Affordable Rent, or shared ownership) then this requires additional funding, as the subsidy required per dwelling is significantly higher.

The other way to support the sector is to support the finances of social landlords, so they’re better able to raise capital. The Building Safety Fund ensures that leaseholders do not have to pay for remediating fire safety issues, but social landlords have not been protected and are having to pay from reserves. If landlords are having to spend their own reserves on remediation, they cannot commit this same money to developing new housing, and nor can they borrow if their capital position is not strong enough. Fully funding building safety work for the social housing sector would be the first step to getting some of the biggest social housebuilders, who have the expertise – and in many cases already own the vacant sites – to build again.

Supporting the social housing sector in this way will not only help build the new social housing we need, but will also help the whole of the housing sector moving towards the 1.5 million new homes target – especially while the market for sales remains stagnant.

But Government doesn’t have unlimited funds, and housing is by no means the only call on them. So what else could government do that doesn’t involve funding?

Planning is a big part of the answer, and the new Government has hit the ground running with planning reform. The changes are welcome, and will now need time to bed in, alongside maintaining the strong rhetoric to ensure all areas play their part in delivering against the new targets.

Government could look to reduce the subsidy needed for social housing by looking at social rents. The previous government reduced rents for four years, meaning that they are currently significantly lower in real terms than they were in 2010. The G15 (group of the largest housing associations in the London area) has calculated that 29% of’ homes are currently below target rent, losing them £67.7m each year in rental income. They could also consider allowing higher rents for more energy-efficient homes, something that we’ve called for at The Housing Forum, to help leverage in some private finance for retrofitting. Increasing rents could see a backlash from tenants (as well as increased costs born by the DWP via higher benefit claims). A key concern would be the impact on those affected by the benefit cap – abolishing the cap would ensure that the welfare safety net works effectively for all types of families to help them afford their rent.

And finally, looking to the longer term and to a higher rate of housebuilding across many years, the government needs to ensure that the sector has the skilled workers it needs:

  • Increased investment is needed in training and developing the workforce. FE Colleges must create training facilities and training that meets with the skills requirements of employers and the sector.
  • Staff in FE colleges and universities need to undertake continued professional development to ensure that they are up to speed with the current practice and regulations around construction.
  • Government should make dramatic improvements to careers guidance in schools to help teenagers make informed decisions about the later stages of their education, and much better knowledge of the types of job opportunities that are out there. Work experience, part-time jobs, internships and visits to local employers can all help.
  • There needs to be clear pathways for young people from school into the many different careers in construction, which includes both building new homes and maintaining and upgrading the existing stock. The London Homes Coalition has done some good work on this area.
  • The Government should not overlook the need of mid-career switchers – who have potential to expand their skillset into growing areas, such as green technology. This requires more flexible approaches to retraining and funding.

Overall, it’s been great to see such as strong focus on housing from the new Government, particularly around planning reform. But it’s now time for them to put their money where their mouth is in terms of the affordable housing sector.

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A plan to boost construction industry capacity to deliver 1.5 million homes

Image by abakumada licensed by pixabay

Moving from such a low base in home building to achieve ambitious targets in a relatively short time frame will create challenges in every aspect of how the construction industry operates.

The government must engage with all the key sectors of the construction industry that will have a role in delivering their planned large-scale home building programme and develop a capacity boosting plan. Also, this plan’s success will rely on its alignment with a training and skills capacity boosting initiative

Any proposed capacity boosting plan should include two key aspects:

  • Delivery capacity building – How to structure the overall design and building of homes, neighbourhoods and towns.
  • Organisation capacity building – How to structure the development corporations and other entities charged with developing homes, neighbourhoods and towns.
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Delivery Capacity Building

How Development Corporations should be set up

To facilitate the large-scale home building programme, local development corporations will need to be created from new, as happened with the creation of the post-war New Towns. The effort and time to build such organisations simultaneously  should not be underestimated,  and a plan to adopt a ‘lean model’ corporate template set-up should be established.

In simple terms, a ‘lean model’ would mean that development corporations would outsource a sizeable amount of their workload to private sector specialist consultancies, allowing them to focus on their core mission.

Engaging consultancies could  leverage their existing skills base and know-how, and share responsibility for capacity building to the private sector, spreading risks associated with development.. This approach would enable more efficient and accelerated project completions.

How Master Planned Developments should be built out

To build at scale, larger master plan developments will be needed. Whether these will be development corporations or other entities such as housing associations, councils or private developers, an ‘enabler’ approach involving sub-developers for various asset types should be used.

An ‘enabler’ approach would involve the master developer selling on parts of an overall master plan development to sub-developers while still maintaining a level of control.

This will allow for the sharing of the delivery burden and development risks allowing the overall delivery to be expedited while still maintaining overall master developer control.

The key to maintaining overall control of what is designed and built is for the master developer to have a comprehensive design guide for all parties involved to adhere to. A comprehensive design guide provides criteria specific for private sector consultants, construction contractors and sub-developers to work to while still allowing for innovation and a broader range of products and ideas from these other partners.

Some of the master plan developments will be new towns by definition and will be developed in accordance with the planned ‘New Towns Code’.

How Statutory Authorities Involvement should be streamlined

Local authority involvement via planning and building control departments is a critical component of delivering a mass home building programme so it is essential that there is an increase in funding and staffing levels. This was acknowledged in the last budget with a GBP £500m boost in funding exactly for this purpose.

In addition, there should be a plan to significantly increase the volume of developments that can be processed by consolidating local authority workloads. This can be achieved if the current reform of the planning regulations simplifies planning by zoning or other similar proposals.

This entails a designated area being provided with a set of development criteria such as land usage, type, height, set back dimensions, etc. If developments are designed to meet these there should be no need for the local planning authority to assess each development individually.

Why its essential to incorporate Modern Methods of Construction (MMC)

Embracing all of the current Modern Methods of Construction (MMC) on a substantial scale will also enhance delivery capacity by increasing build speed, reducing costs and reducing the need for skilled labour on site. The offsite factory mass production of building components or partially assembled units has mostly worked in the past where a large volume of residential, educational, medical or other assets have been needed.

MMC has faced some difficulties in recent years, partly due to a lack of a steady product supply line, with innovation and choice not at the level of countries where this is more prevalent. The large-scale build program will resolve the supply issue, but the government’s plan should be to reinvigorate the sector with some expertise from countries where MMC is better developed such as Germany. This could be done by creating a centre of excellence or sponsoring partnership L&D programmes for UK companies to learn from foreign companies.

The plan should include ‘modular kit homes’ for self-builds by individuals, small builders or developers. While self-builds would not contribute to public housing, the UK has much potential to develop this sector, offering direct competition to the professional home building developer sector as well as adding overall housing supply.

Organisational Capacity Building

Making Development Corporations centers of delivery excellence and best practice

As noted earlier,’ establishing a wave of new development corporations will be a feat in itself, and the know-how and skillsets required for this in the current market will be limited. In addition to the ‘lean model’ , to attract the best skilled individual people in a competitive market, these new corporations should prioritise becoming ’employers of choice.’

Being an ‘employer of choice’ by having a work environment, benefits and culture that attracts the best new joiners and retains existing employees should be complemented by a substantial training programme for graduates. This should be supported by educational and professional institutions, to cultivate a high ratio of trainees across various business roles. Opportunities for upskilling and training of staff in general should be part of this, and the development corporations should aim to set the benchmark in the industry.

How to effectively monitor and control a large-scale home building programme while its being delivered by many organisations

As part of building capacity, there needs to be central monitoring and control of this large-scale home building program across all delivery entities and all local authority areas to ensure there is a level of uniformity in monitoring metrics across the board in terms of value-for-money, delivery outcomes, good design, timelines, quality products, etc.

A development corporation or any other type of delivery organisation will monitor their development work and pass on collected data to a central overarching body such as a dedicated unit within the Ministry of Housing, Communities and Local Government (MHCLG). This data is used to decide what is and is not working and can be continually assessed to enable strategy updating over the life of the programme.

To achieve this, when development corporations are established, a standardised set-up template encompassing all corporate aspects should be used to streamline the establishment of the many required development corporations and other delivery entities, ensuring synergy, avoiding disruptions, and expediting delivery. Additionally, a best practice residential development delivery template should be used, covering investment, procurement, design and construct stage gates, complete with a Project Management Office (PMO) setup for every delivery entity.