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Brexit will be difficult, but it will also give us a stimulus to be innovative

Britain’s departure from the European Union will be challenging, but Wales’ ambitious social housing sector has already shown it is prepared to try new things, says Aaron Hill

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It has been 18 months since it was decided that the UK should leave the European Union, and it seems not a day goes by without the extensive divorce proceedings hitting the headlines.

Whether Brexit is “red, white and blue”, or “smooth and orderly”, the change in our relationship with Europe has the potential to precipitate significant change across many parts of British industry, not least for those who build the homes we need to tackle the housing crisis.

In Wales, much of the Brexit debate to date has been dominated by structure, process and devolution, with very little by way of an examination of the policy issues we may face and the solutions we will require.

That is why we held a round table with the Bevan Foundation – an independent thinktank – in September to bring together experts in construction, skills and housing to discuss the impact Brexit will have on the main areas destined to be hit by our looming exit.


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We know from sector conversations and working with the National Housing Federation’s Brexit and Beyond study that leaving the EU won’t necessarily lead to new risks for the construction sector. Challenges are already present across labour, productivity, supply and investment.

However, it has the potential to accelerate some of the issues we already face.

Following the round table, Community Housing Cymru produced the After Brexit: Housing the nation report with the Bevan Foundation to identify key concerns from the ground and to find ways to mitigate these problems together. The concerns brought up by those interviewed were significant, but not surprising.

“Even in Wales, where the sector’s reliance on migrant labour is lower than other parts of the UK, there is a nervousness about the supply of skilled labour.”

Even in Wales, where the sector’s reliance on migrant labour is significantly lower than other parts of the UK, there is a nervousness about the supply of skilled labour, or lack thereof.

Wales is already facing a skills shortage, and past economic downturns have shown us there is a real possibility that mobile workers will leave Wales to find work in areas more reliant on EU workers. History is not immune to repeating itself in this regard.

Employers can attempt to combat this problem by offering incentives to keep their workforce, such as accreditation-level training.

Aside from retention, investment in recruitment tactics such as apprenticeships could also help nurture a stream of talent.

More than 2,000 jobs were offered through apprenticeships in 2015/2016; however, our round table highlighted concerns around flaws in the current system in terms of its bias towards 16 to 18-year-olds and males.

“Employers can attempt to combat this problem by offering incentives to keep their workforce, such as accreditation-level training.”

Appealing to children of a younger age, and helping colleges to fund traditionally expensive construction courses, could fill gaps and yield more interest in the sector from people of all ages.

Supply chains and investment remain big concerns, especially following the European Investment Bank’s funding freeze.

However, nearly two years on from Mark Farmer’s rallying cry to the construction industry to “modernise or die”, productivity was at the heart of the round table discussion. Our report demonstrates the need for a national strategy, accessible to both volume builders and small to medium-sized enterprises, to drive up productivity and stimulate innovation.

The Welsh Government’s Innovative Housing Programme, which creates demonstrator schemes to help inform the types of homes needed in the future, offers a glimmer of hope.

Among the modular units in Cardiff and Passivhaus homes in Powys, a scheme that stands out is the prospective development of an offsite construction factory in South Wales which is currently being explored by a consortium of housing associations.

The depth and breadth of the schemes already approved by the Welsh Government demonstrate a sector that is actively looking to innovate.

Despite the upcoming hurdles, the sector in Wales is ambitious and visionary. We have seen this for ourselves over the past year when speaking with hundreds of housing professionals to inform a 20-year vision for housing associations in Wales.

“The depth and breadth of the schemes already approved by the Welsh Government demonstrate a sector that is actively looking to innovate.”

After listening to more than 500 people, we revealed our Housing Horizons vision in November. Commitments include an aim to double the delivery rate of affordable homes to 75,000 by 2036, making big strides towards building low-carbon homes and investing in local economies.

If the sector is to achieve this vision in a post-Brexit Wales, we must be prepared to work differently with both new and old partners to navigate some of the stormy seas that may be on the horizon.

There is little positivity in the story of Brexit so far, but it gives all of us involved in tackling the housing crisis a stimulus to deal with some of the issues we face.

Aaron Hill, assistant director of policy and public affairs, Community Housing Cymru

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