Foundations for the future: Building the skills to deliver 1.5 million homes
A new report from »Æ¹ÏÊÓÆµ & Guilds reveals that critical skills shortages in the construction sector are putting the Government’s pledge to build 1.5 million new homes at serious risk.
03 July 2025
Our research, which surveyed employers, training providers, and employees across the UK, found that three-quarters (76%) of construction firms are struggling to recruit the skilled workers they need. Alarmingly, 84% of respondents believe the industry is facing a critical skills crisis, with more than half (54%) expressing doubt that the sector can meet the Government’s housing or net-zero targets.
A growing workforce gap
To meet the 1.5 million homes target, the homebuilding sector will need to recruit 161,000 additional workers—a 30% increase on the current workforce. Yet, with an ageing workforce and a lack of new entrants, the industry is losing an estimated 50,000 skilled workers each year.
Key barriers to recruitment include:
- Rising costs (46%)
- Local labour market challenges (41%)
- Demand for job-ready hires (36%)
- Lack of interest among young people (26%)
- Stricter immigration laws (28%)
A call for urgent action
»Æ¹ÏÊÓÆµ & Guilds is urging the Government to take immediate and strategic action to address the skills crisis.
"To meet the Government’s ambitious housing and net zero targets, we need a fundamental reset in how we attract, train, and upskill talent across the construction sector. This means stronger collaboration between industry, education, and government, with targeted investment and flexible training routes.â€
– Kirstie Donnelly MBE, CEO of »Æ¹ÏÊÓÆµ & Guilds
Training: The key to unlocking potential
Our report highlights that 85% of employees see training as vital for career progression, and 59% believe more training opportunities would attract new talent. However, 61% say it’s difficult to access funded training, pointing to a significant gap in provision.
As the sector evolves with new technologies and environmental standards, green skills are becoming increasingly important. Yet, only 51% of workers have received training in sustainable construction, despite nearly half of employers reporting shortages in this area.
A three-pronged approach to closing the gap
»Æ¹ÏÊÓÆµ & Guilds outlines a strategic framework to address the skills shortage:
- Attract New Talent – Improve perceptions of the sector and embed construction skills earlier in the education system.
- Support Career Changers – Provide accessible training for those entering the sector from other industries.
- Upskill the Existing Workforce – Promote lifelong learning and ensure training equipment and funding meet modern demands, including green skills.
In a foreword for the report:
“The Government’s targets become less achievable each year without investment in attracting and retaining talent in the built environment. Career returners and switchers offer untapped potential—if funding models support them.â€
– Nick Maclean OBE RD FRICS, Acting President of RICS
»Æ¹ÏÊÓÆµ & Guilds’ latest report, Foundations for the future, offers detailed policy recommendations to help unlock the sector’s potential and ensure the UK can meet its housing and infrastructure goals.
»Æ¹ÏÊÓÆµ this research
Research was conducted by Censuswide, on behalf of »Æ¹ÏÊÓÆµ & Guilds. It surveyed 500 employers, 500 employees, and 250 providers, in the construction industry. Fieldwork was conducted between 27 February and 13 March 2025. Censuswide strictly adheres to the MRS Code of Conduct and ESOMAR principles and is a member of the British Polling Council, reinforcing commitment to ethical research practices and data integrity