In response to ambitious housebuilding goals, a prominent think tank has called on the Housing Secretary to ease immigration policies to attract skilled labour.
The Institute for Government (IfG) has urged the relaxation of immigration rules to meet the most substantial housing targets since the 1960s. This recommendation suggests adopting visa models similar to those applied to seasonal agricultural workers. Sophie Metcalfe, a researcher at the IfG, highlighted the necessity of a comprehensive construction skills plan. Metcalfe warned of a severe shortage of construction workers fueled by a recent downturn in housing. ‘The new Government has bold plans which set out encouraging first steps, but its housebuilding programme poses huge delivery challenges as much as it does political ones,’ Metcalfe stated.
The IfG report underscores the housing sector’s heavy reliance on subcontractors, who frequently collapse during market downturns, worsening labour shortages. The industry’s struggle has been evident since 2022, with major housebuilders unable to scale up rapidly enough to meet Government objectives. Recent Office for National Statistics data reveals that housing starts fell to a decade low of 162,350 in the year to March. Concurrently, the Construction Skills Network projects that the industry will require an additional 250,000 construction workers by 2028.
However, public concerns about immigration could make it challenging for the Government to increase migrant labour. The IfG recommended that a new public body, Skills England, be tasked with developing a strategy to address the construction labour shortage. While easing visa rules might provide a short-term fix, a system where construction workers could be sponsored similarly to seasonal agricultural workers was also suggested.
The Conservative government has already added various construction roles, such as plasterers, carpenters, and bricklayers, to its shortage occupation list, which allows for reduced visa fees and salary thresholds. Nevertheless, the IfG report calls for further actions, including keeping the same Housing Secretary throughout this Parliament to ensure consistent leadership. The think tank also urged Ms Rayner to maintain her commitment to prioritising national housebuilding targets over local objections, given the urgent need for swift action to address labour shortages and fulfil the Government’s housing ambitions.
The IfG believes that easing immigration rules and adopting a comprehensive construction skills plan are critical steps for meeting the Government’s ambitious housebuilding targets. Consistent leadership and prioritising national objectives over local resistance can potentially mitigate the severe labour shortages faced by the construction industry.
