As the construction industry navigates another period of upheaval, PBC Today editor Matt Brundrett examines the world of contradictions that seems to plague the industry
The latest reports from the RICS construction monitor and the S&P Global UK construction PMI reveal a concerning trend: last month saw a sharp downturn in the construction industry, with activity plunging to its lowest level in months.
Private housing has been particularly hard hit, suffering from a combination of dwindling demand and rising costs. In a nation grappling with a persistent housing crisis, one might expect this sector to remain resilient. Instead, we are witnessing a stark decline, with activity plummeting to a net -19%.
In the middle of a housing crisis and economic instability caused by the war in Ukraine, and Israel and the US continuing to wage war in the Middle East (…wait, what year is it again?), one would expect that housebuilding would remain strong due to high demand.
And yet, it does not.
While these geopolitical tensions and domestic policies undeniably exert considerable influence on the construction industry’s performance, there is another, less frequently discussed yet crucial, aspect at play: trust. Low consumer trust in the industry diminishes confidence, which in turn results in waning demand.
This commentary is not meant to cast doubts or aspersions on individuals or any particular sector of the industry, but rather to highlight a significant factor that could be exacerbating an already challenging environment.
Trust in builders is weak
It is difficult to deny that, from the average consumer’s point of view, hiring a builder is quite a hassle, and it can often be easier to simply deem many jobs not worth the risk.
The Federation of Master Builders (FMB) recently published research finding that one in five households has been discouraged from hiring builders due to a lack of confidence. 82% would be willing to pay more to hire a builder with proven competence.
19% of homeowners in this research have stated they have previously put off work on their home due to not having confidence in the builders they could find, and 27% of these delayed projects were for necessary jobs such as repairs or upgrades to electrics, plumbing, or heating systems, while 24% were for structural issues or disrepair, and 15% were for adding essential rooms like bathrooms or bedrooms.
All in all, Brian Berry, the FMB’s chief executive, described homeowners’ experience in hiring a builder as a “gamble.”
Moreover, as reported by the BBC in 2023, the Chartered Institute of Building (CIOB) published research finding that public opinion leads towards older houses being better than new-builds due to “undeniable failures by some high-profile companies” contributing to “a lack of trust in housebuilders.”
33% of respondents to the CIOB’s survey reported a low level of trust that new homes were being built to a high standard.
The opinions of the public do not end at research conducted by construction organisations either. Standalone BBC reports, one from 2019 and two more reports from 2024, demonstrate “nightmares” for new-build homeowners buying homes built by Taylor Wimpey and Cala, with issues including:
- Substandard or leaking ceilings
- Poorly fitted fire doors
- Missing insulation
- Condensation issues
- Bathrooms and kitchens needing to be replaced
- Windowsills being installed too low
- Windows unable to be closed
- Power issues and malfunctioning in-built electrics, such as alarm systems
- Substandard plumbing and water heating issues
- Outdoor areas such as patios or driveways needing re-laying
Even the government is not exempt, as last year’s insulation scandal saw between 9,000 and 13,000 homes have internal insulation installed, with major issues requiring repair. The ensuing report led to several firms being suspended for poor practice, and the public accounts committee (PAC) even called for a fraud investigation.
If even the government can’t be trusted to reliably find skilled workers, what hope does a single household have?
The issues go beyond ‘bad builders’
The previously-mentioned FMB’s research uncovered issues that go beyond fraudulence, however. If all rogue builders were removed tomorrow, many consumers would still face several issues making navigation difficult, as 19% reported having issues with builders and irregular attendance, 15% reported ‘snagging problems’, 11% reported communication failures, and 10% reported price increases after contracts were signed.
Even before a builder is hired, it can be difficult to know where to turn. The HomeOwners Alliance advises that homeowners seeking a builder should obtain at least three quotes for major works, as prices can vary widely between contractors.
These different quotes can bring questions for homeowners – if you were to choose the cheaper option, what guarantee would you have that you wouldn’t be hiring a cowboy or risking sub-standard work? On the other hand, if you were to choose the more expensive option, what guarantee would you have that you would get the quality the price would suggest? How do you know what is competitive and what is a sham?
Price quotes can vary for several legitimate reasons, of course, as the builder must make assumptions about the scope of work, consider their overheads, contingencies, abilities, and any extra services such as waste removal, engineering, etc.
But while the differences being applied might be obvious to the worker, they are a deep and confusing area for the average homeowner, with little to no clarity.
Trust has a larger impact for construction firms than you may realise
The FMB’s research concludes that trust and confidence issues with builders are costing the economy around £11.2bn per year due to confusion during hiring and negative past experiences putting off future hires, resulting in delayed or cancelled extensions, renovations, and repairs.
That is, obviously, a lot of money, and is also a reflection of repressed demand in the market. This, in turn, will affect the supply chain as merchants, manufacturers, surveyors, designers, and subcontractors see their demand drop.
As ever, this will have a greater effect on small- and medium-sized enterprises (SMEs) and will contribute to the construction industry’s continued rise in the number of companies entering administration.
Furthermore, as trust remains low, projects in retrofit or energy efficiency improvement will dwindle, affecting net zero targets. And the construction industry as a whole suffers reputational damage.
As anyone in the industry will know, the UK is actively trying to build more homes, improve energy efficiency, modernise infrastructure, and stimulate growth, but none of that becomes easier if the public sees commissioning building work for themselves as financially risky or unnecessarily stressful.
The uncomfortable reality is that many of the industry’s trust problems are not solely about technical capability but also about transparency, communication, accountability, and the overall customer experience. Most homeowners are not construction experts, nor should they need to be, but if the process feels opaque, inconsistent, or difficult to navigate, confidence will falter. This should be a major concern for those in the industry, as confidence directly impacts demand. A homeowner who feels reassured and confident in the builder they hire is more likely to proceed with a project, recommend the contractor, and hire again in the future. A homeowner who feels uncertain often does nothing at all.
Construction talks a great deal about skills shortages, planning reform and material costs, and rightly so. But if the industry wants sustained growth in the domestic market, rebuilding public trust may prove just as important as solving any of those challenges.
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