Labor shortages threaten UK’s 1.5 million homes target, report warns

By Mehmet Solmaz

BIRMINGHAM, England (AA) - A shortage of construction workers across Britain could undermine the government’s pledge to build 1.5 million homes in England by 2029, according to a new industry report.

The study, titled “Delayed Projects: The Impact of a Shrinking Workforce,” was published by the DART Tool Group and warns that labor gaps are increasingly affecting project delivery across regions.

The report estimates the sector must recruit about 47,860 additional workers each year – nearly 240,000 over five years – to sustain current output as construction demand rises.

“The core issue is that as the value of construction projects increases, we’re seeing more people leave the profession than entering,” said Ryan Paterson, managing director at DART Tool Group.

The Labour Party government has committed to delivering 1.5 million homes in this parliamentary term, roughly 300,000 annually, through planning reform and infrastructure investment. Ministers say the target would represent the highest sustained level of housebuilding in more than four decades.

But Paterson said the industry is facing “some of the toughest shortages in recent years,” adding that workforce constraints are “now starting to impact project timelines.”

The report said a nationwide annual recruitment uplift of 1.8% above typical levels is needed to keep projects on track, rising to 2.15% in northern England, where demand is strongest.

Without stronger recruitment and training efforts, the report warned, delays could intensify and threaten housing delivery goals.