New research looks into government house building targets and the skills and workforce needed to supply it

Only a quarter of construction students are entering the house-building workforce, according to a new report.

The publication from the Home Builders Federation (HBF) – ‘A Hard Hat to Fill’ – looks at the skills gap in the construction industry and the impact on meeting government housing targets.

The report looks at why the home building sector is – and has been – facing a significant skills shortage and the exacerbating factors:

• just 25% of those entering current construction related higher education courses are going onto a career in house building
• a shortfall in the number of recruits being attracted into the sector
• a severe loss of skills during the previous recession – 40% to 50% of skilled labour left the industry
• increases in demand – the industry has delivered an increase in supply over the past decade
• an ageing workforce – 25% of the homebuilding workforce is aged over 50 meaning the sector is facing an impending retirement cliff edge.

240,000 people will need to be recruited across a broad range of roles and skills to deliver on the Government’s housing targets, according to the report.

To meet those targets, home building needs to increase by 80,000 units a year, based on the most recent net additions figures. Research undertaken by the (HBF) has found that for every 10,000 new homes the industry builds, 30,000 new recruits are needed.

In addition, the transition to the Future Homes Standard will involve significant changes to the design and construction of new homes, which will require further training and skills.

The HBF says closing the skills gap requires a long-term plan for the future of apprenticeships, further education, and supporting the students and businesses which make up the workforce.

Work done in this area by the Government so far includes the replacement of the Apprenticeship Levy with the new Growth and Skills Levy, and the establishment of Skills England as a body to oversee the reforms and to identify and monitor gaps in the country’s workforce.

Apprenticeships

It’s estimated around half of the onsite workforce in the UK have undertaken an apprenticeship for the trade they were working in, making apprenticeships one of the most popular routes into a construction role.

However, in recent years, the ability for businesses to recruit and train apprentices has waned, the HBF says, due to reasons including:

• employer perception of the quality of apprenticeship courses is variable
• there are not enough apprenticeship positions available for everyone in further education courses to progress to one leaving students unable to advance into their chosen industry
• The Apprenticeship Levy has mostly been used for higher level qualifications but has seen a reduction in the number of apprentices at Levels 2 and 3, meaning it is not addressing the lack of newer entrants into the industry
• Apprentices pay during the first year of training is simply not an option for young people, particularly those who live in London or the South East.

Further Education

Around 100,000 students are enrolled in further education (FE) construction courses at any one time, but, according to the HBF, the courses are not producing work-ready potential recruits.

The report states that just 25% of FE learners gain employment in construction within six months of finishing their course with 60% leaving the industry completely shortly after finishing their training.

T Levels

T Levels were introduced in September 2020 as an alternative to A Levels (Level 3) for those seeking a technical qualification. Since 2021 there has been a T Level in onsite construction available, which focuses on practical skills in areas like bricklaying, carpentry and joinery, plastering, and painting and decorating.

In the 2022/23 and 2023/24 academic year, over 10,000 students undertook a T Level qualification. However, only 213 of these were in the onsite construction course – just 2% of the student base.

In conclusion the HBF report says the key changes the home building industry needs to see include:

• As the Growth and Skills Levy is being developed, the Government should consult with the home building industry to ensure that it will support developers to recruit the broad range of skills needed to increase housing delivery.
• Reform the apprenticeship training model which is out of step with employer needs
• Simplify the End-Point Assessment (EPA) process
• Ensure FE colleges are properly funded and resourced.
• Restructure and reform FE construction courses to put a greater emphasis on the development of practical skills.