Construction skills shortage ‘critical issue’ for industry

L Access to talent is a key concern for housebuilders l 400,000 workers needed each year to meet demand

The British Property Federation (BPF) has warned that government efforts to address the housing crisis will falter if strict post-brexit immigration controls result in fewer workers coming to the UK.

The organisation’s chief executive, Melanie Leech, said that access to talent following Britain’s divorce from the bloc was the most pressing concern for property firms.

“Talent is a critical issue to sort and, in our sector, it’s construction skills,” she said.

“There are a huge number of workers coming from within and outside the EU currently and, if we’re going to have a really ambitious house building programme and we’re going to build the business infrastructure we need for the 21st century, we have to make sure we can staff the construction industry.”

Prime Minister Theresa May has committed to slashing immigration to the “tens of thousands”, despite opposition from business groups warning of an already chronic skills shortage, including in the construction sector. Consultancy Arcadis estimates that the sector needs to recruit more than 400,000 workers a year if it is to meet the pent-up demand for new homes.

“We know that migration has a net positive impact on GDP, they [the government] know all that, but there is this perception issue on the immigration question and they’re going to have to find a way through that,” Leech added.

However, the BPF chief commended proposals set out in the housing white paper, includingmeasurestoencourage “build to rent” developers.

She said, while not a “panacea”, the policy has the potential to bring in billions of pounds of investment and welcomed the shift from an emphasisonhomeownership.

The BPF is also calling on whichever party wins the general election to maintain an “absolute focus” on maintaining business confidence and ensuring the UK remains attractive to investors. Property heavyweights such as Land Securities have recently flagged a fall in demand in the London office market following the Brexit vote.

However, Leech said the UK’S fundamentals were still strong and pointed to “significant investment decisions” taken since the Brexit vote on 23 June, adding: “We have stable political system and a stable legal system and there’s a huge amount that makes the UK an attractive place to invest.

“Soit’snotadoom-and-gloom scenario,butit’saperiodwhere people have had to take stock and some people have pressed the pause button.” British fashion brand Jack Wills has expanded into mainland Europe as it looks to offset the impact of the Brexit-hit pound. The retailer, famous for its tweed blazers and hoodies, is launching a new shop in Sylt, Northern Germany, amid plans to roll out 11 more international stores in the coming months. It comes as British firms grapple with rising import prices as a result of sterling’s slump since the Brexit vote, with some having to pass down the costs to consumers.