Construction Sector Requires 2,200 New Workers Annually, Says Housing Chief

The UK construction sector is confronting a persistent labour shortage, necessitating an intake of 2,200 new workers annually to satisfy current demand, according to recent analysis. This deficit underscores systemic issues in attracting and retaining talent within an industry vital for housing and infrastructure development.

Carol Matthews, Chief Executive of Riverside housing association, has called for substantial government investment to bolster apprenticeships and training programmes. Matthews emphasised that funding must be specifically allocated to support younger individuals entering the sector, ensuring a future workforce capable of addressing national construction targets.

Matthews highlighted that local authorities possess valuable land for development, but often lack the necessary financial resources to initiate projects. She proposed a strategy where local authorities could provide land for free or at reduced cost to housing associations, provided that a significant proportion of the resulting homes are affordable. This approach, she argued, would allow housing associations to absorb land costs and direct savings towards social housing provisions.

Furthermore, Matthews criticised the current grant funding system for affordable housing, describing it as 'start-stop'. She advocated for a stable, long-term funding settlement extending over at least a decade. Such predictability, she contended, would enable housing associations to plan with greater certainty and invest more effectively in apprenticeships, ultimately strengthening the workforce and delivering essential housing.