The UK government’s bold ambition to build 1.5m homes over this Parliament will require nothing short of a construction revolution. With only 218,000 new homes completed in 2024, achieving the target of 370,000 per year requires a significant shift in approach.
While the changes announced to speed up planning are very welcome, other significant barriers continue to prevent builders from really pressing the accelerator, not least on the demand side, with young people in particular unable to access affordable mortgage lending.
We have also seen a dearth of housing associations in the market take on the affordable housing delivered as part of a planning permission, and whilst it must be hoped that the Spending Review funding for Housing Associations helps in this regard, there are also challenges, in particular for SMEs, with the growing costs and requirements placed on developers and the time it takes to process planning applications.
If the government can address these constraints, a big increase in workforce capacity will be required. This takes time to develop, but work is already underway.
The Spring Statement announced the government’s commitment to significant investment in construction skills development, including £625m to train up to 60,000 new construction workers by 2029, aiming to address the sector’s critical labour shortages, in addition to sponsoring a new Construction Skills Mission Board, which will ensure employers can work collaboratively to secure the workforce needed to meet future demand.
The recent Spending Review also hinted that wider skills funding will be provided to support training in the housing industry and supply chain, with 1.3m 16‑19 year‑olds able to access high‑quality training opportunities.
However, this is not enough to meet the shortfall of workers needed to hit the Government’s housing targets.
Homes do not build themselves, and without a coordinated push to grow and support the construction labour force, this ambition may remain unfulfilled rather than a delivered legacy.
Industry has the skills it currently needs, but growth demands more
The Spending Review suggests the government is beginning to understand the scale of the challenge. Chancellor Rachel Reeves has set a target to raise the employment rate to 80%, backed by £3.5bn in employment support through 2028, and has committed to an additional £1.2bn each year for skills development by 2028.
This builds on the earlier pledge of £625m between 2025 and 2029 to train up to 60,000 construction workers. These numbers are positive, but they do not yet reflect the scale of workforce expansion needed to build 1.5m homes.
Today, the construction sector can sustain current levels of housing delivery. However, the scale of workforce expansion required to meet future housing targets is unprecedented. HBF’s recent report, A Hard Hat to Fill, shows that delivering an additional 10,000 homes requires 30,000 new workers across critical roles.
To reach the government’s target of 300,000-plus homes per year, we need approximately 239,000 new workers over the next five years, according to the Construction Industry Training Board (CITB). This includes 20,000 bricklayers, 20,000 groundworkers, 8,000 carpenters, 3,200 plasterers, and 2,400 each of plumbers, electricians, and roofers.
These figures illustrate the scale of the challenge. The same skilled workers needed for new homes are also essential for ongoing infrastructure projects and the energy efficiency retrofitting of older buildings. This twin demand increases pressure on a workforce that is already under strain.
The age profile of the construction workforce adds to this concern. One in five builders is now over the age of 50. Without concerted action, we risk losing a generation of experienced workers to retirement with no adequate pipeline to replace them.
Equally troubling is the lack of diversity across the workforce. Our most recent workforce census revealed that 96% of on-site workers in the homebuilding industry are male. This gender imbalance, along with wider underrepresentation of ethnic minorities and people with disabilities, restricts the potential talent pool. Addressing these equity, diversity and inclusion gaps is not only a social imperative but a practical one, critical to the industry’s long-term resilience.
Apprenticeships help, but they are not the whole answer
The government’s recent skills measures and funding commitments have been a positive step. The introduction of new Level 2 construction courses under the Free Courses for Jobs scheme, the expansion of Skills Bootcamps, and the establishment of ten specialist technical colleges demonstrate a welcome commitment to building a stronger skills base.
We particularly welcome the replacement of the Apprenticeship Levy with the new, more flexible Growth and Skills Levy, as well as the increased focus on Level 2 and Level 3 programmes. These levels are where most construction apprenticeships are situated, and greater flexibility in funding access is essential to attracting more young people into meaningful roles. The phasing out of Level 7 apprenticeship funding for over-22s from January 2026 is intended to free up resources for lower-level qualifications that are vital to the homebuilding sector.
However, the phasing out of funding should not be to the detriment of that demographic within the sector who need to extend their professional qualifications and increase their in-depth knowledge and understanding of new and key skills for the future. Attracting and retaining talent across all areas and levels within the industry is vital.
Reviewing and developing skills within the trade workforce is absolutely a priority; however, ensuring that the correct level of professional development is in place for all professions within the industry across all disciplines is vital to encourage development and retention of its wider talent.
But apprenticeships alone cannot resolve the broader workforce challenge. The construction skills gap requires a systemic response and the opening up of alternative pathways into the sector beyond apprenticeships, one that includes further education reform, improved access to funding for key trades such as plumbing and electrical work, and clearer guidance on the future of the proposed Growth and Skills Levy.
Simplification of new entrant programmes together with a wider provision of alternative pathways is key. The focus is much wider than the provision of apprenticeships. It is necessary to ensure that fast-track schemes, career change programmes, and transition programmes are all ‘fit for purpose’, for example. The sector needs wider investment in other new entrant programmes across all disciplines and levels, to attract the best talent from the widest talent pools.
Despite good intentions, the current Apprenticeship Levy system remains overly complex and bureaucratic. Smaller firms, in particular, struggle to access the funding they need. Reforming this system and replacing it with a well-designed Growth and Skills Levy must happen in collaboration with industry. That collaboration is the only way to ensure any new funding model genuinely supports the training needs of employers of all sizes.
Further education needs urgent reform
Beyond apprenticeships, further education plays a vital role in shaping the next generation of homebuilders. But at present, the system is not delivering.
Around 100,000 students are enrolled in further education (FE) construction courses at any one time, but just 25% of these learners secure employment in construction within six months of finishing their course, while 60% leave the industry entirely, shortly after finishing their training.
There is a clear gap between what colleges teach and what employers need, especially in the construction industry. To address this, government funding must increase for further education, helping colleges work more closely with employers.
Course content should better reflect modern construction demands, including technical trades, digital skills, and sustainability, while offering clear pathways to industry-recognised qualifications.
CITB funding must also better align with the roles that are most in demand, as the ITB review released in January noted. Plumbing and electrical work, particularly as it relates to emerging green technologies, is crucial to both new builds and retrofits. Yet these disciplines are often under-supported within the current CITB grant funding structure. Rebalancing investments to support high-priority skills such as these is essential to enabling a sustainable and green workforce.
We must also invest in upskilling the existing workforce
Meeting housing targets is not just about new entrants. We must also invest in upskilling the current workforce to embrace modern construction methods, boost productivity, and meet new standards. The sector continues to lag behind others in productivity and innovation, partly due to a skills profile that has not kept pace with technological change.
The introduction of the Future Homes Standard will create new requirements for energy efficiency, compliance, and design. This will demand a redefined skill set across existing roles. Technologies such as modular construction, offsite manufacturing, and digital planning tools all hold great promise, but their benefits will remain out of reach unless workers are trained to use them effectively.
Upskilling must be embedded in workforce planning. The Construction Leadership Council has already highlighted that output per hour remains 13.5% below the national average. Raising that figure requires significant and sustained investment in training.
Government must support demand to unlock workforce investment
At the heart of all of this lies a simple truth: employers will only invest in training if they are confident there will be consistent work for those being trained. The government must support effective demand across the housing sector, helping to create the conditions in which businesses feel secure enough to grow their workforce.
That includes giving clear and stable policy signals to housebuilders, reducing uncertainty in the planning system, and ensuring a supportive financial and regulatory environment. Without this foundation, training initiatives will struggle to gain traction, and employers will hesitate to commit to long-term workforce planning.
The current fragility of demand is a significant barrier to apprenticeship uptake, particularly among small and medium-sized enterprises (SMEs). Providing grant support to these businesses is a step in the right direction; however, access to such support must be simplified and made more efficient. Too many firms still find themselves locked out of schemes they have paid into via levy contributions.
Industry is stepping up
The homebuilding industry is not waiting for the government to act. For example, the new sector skills plan, developed by the Home Builders Federation and its partners, outlines a clear roadmap for attracting, recruiting, training, and retaining talent.
Additionally, HBF is working to bridge the gap in the talent pipeline, responding to the challenge through several initiatives and programmes, including skills hubs, in partnership with NHBC, the Women into Home Building programme, the Partner a College pilot programme, and the School Outreach programme.
Our NHBC hubs are part of a commitment to developing 12 Hubs over 10 years to deliver additional apprenticeships and key skills. Currently, a hub in Lichfield is progressing, and a contract has been signed with Bellway for Barking Riverside London, planned to open in early 2026, with HBF supporting the steering group for this project.
The Women into Home Building programme, now in its third year, provides attraction and work experience for those interested in becoming future site managers. Following work experience, those interested in progressing further are interviewed for roles and offered roles if appropriate
The Partner a College programme, funded by CITB, is a two-year pilot which aims to set a new standard for collaboration between industry and education providers, improving how construction courses are designed and delivered. By working directly with colleges, the programme aims to embed industry expectations and provide students with practical career insights in the home building sector.
This pilot builds on existing efforts through skills hubs across the UK, where over 11,000 tradespeople have already benefited from specialised masterclasses in brickwork and roofing.
The School Outreach programme, which recently received an Innovation in Recruitment award from Personnel Today, aims to engage students across the UK and raise awareness of careers in construction. Launched in 2021, the initiative targeted primary and secondary schools, aiming to inspire students, challenge perceptions of the industry, and highlight various career paths. The programme focused on reaching underrepresented groups, including female students, those from disadvantaged backgrounds, and ethnic minorities.
But for these efforts to succeed, they must be matched by an equally committed response from policymakers. Skills England, the Construction Skills Mission Board, and other government-led initiatives must embed housing as a central focus in their strategies. Industry engagement must be consistent, detailed, and sustained.
In summary
If the government is truly committed to delivering on its promise of 1.5m new homes, it must place workforce development at the heart of its strategy as a national priority.
Meeting this ambitious target goes beyond bricks and mortar and requires creating a skilled, diverse, and modern construction workforce capable of embracing innovative techniques and meeting industry demands.
Achieving this will require a clear understanding of future skill requirements in the short, medium, and long term, as well as targets, deeper investment, and a long-term plan that aligns education, training, and industry needs. Critical reforms include overhauling the Apprenticeship Levy, enhancing support for further education, widening entry routes, simplifying and improving access to CITB funding to support the green skills transition, and providing opportunities for smaller employees to access training without the need to forgo income.
Above all, success depends on meaningful and lasting collaboration between government, industry, and educators. Without these commitments, the housing promise risks becoming another missed opportunity in a country that cannot afford delay. If done correctly, we will not only meet the housing challenge but also build a stronger, greener, and more inclusive construction industry for generations to come.
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