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We must put our people first if we’re to build more new homes this year

Chronic skills shortages remain one of the biggest barriers to progress in development, writes Jen Radcliffe, head of partnerships at PfP Thrive

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LinkedIn IHChronic skills shortages remain one of the biggest barriers to progress in development, writes Jen Radcliffe, head of partnerships at PfP Thrive #UKhousing

A new year, a new opportunity to create more much-needed homes. But as we step into 2026, our industry faces a paradox: ambition is high, but the challenges are familiar and unrelenting.

Headlines this past week underline the scale of the challenge ahead. Bloomberg reported that UK housebuilding has suffered its sharpest drop since the COVID-19 lockdown in 2020, while The Guardian recorded what it calls our sector’s deepest slump since that same year.

Those reports followed data from S&P Global indicating that activity across the construction sector, from housing to commercial and civil engineering, fell again in December 2025, with both housebuilding and commercial construction declining at the fastest rate since May 2020.


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All this made for unwelcome reading, highlighting a stark and increasingly familiar dilemma for construction and housing leaders: rising unemployment sits alongside a persistent shortage of skilled trades, technicians and experienced managers.

In housing and construction, this is not simply a matter of workforce statistics – it has real, tangible consequences. Skills gaps slow programmes, increase costs and place additional strain on teams that are already stretched, ultimately impacting the sector’s ability to deliver the volume, quality and pace of new homes the country urgently needs.

“The Construction Industry Training Board has repeatedly warned that the UK will need hundreds of thousands of additional workers over the coming years to meet demand”

The most credible route forward is sustained investment in skills, with apprenticeships playing a central role in addressing the sector’s structural challenges. Developing people, supporting apprenticeships and creating clear, visible career pathways will determine whether housing and construction have the workforce needed to meet future demand. Without that investment, even a return to economic stability or modest market recovery risks being held back by capacity constraints on the ground.

This is not a theoretical concern. The Construction Industry Training Board (CITB) has repeatedly warned that the UK will need hundreds of thousands of additional workers over the coming years to meet demand, driven by housing delivery, infrastructure investment and net zero requirements. 

At the same time, an ageing workforce and high attrition rates mean the pipeline of new entrants and career changers is not yet sufficient. Skills shortages are already contributing to delays, cost inflation and reduced delivery confidence across the sector.

Apprenticeships offer a practical and proven remedy. By combining hands-on experience with structured learning, they allow individuals to contribute meaningfully from day one while developing critical technical and leadership skills over time. Crucially, apprenticeships are no longer confined to entry-level roles. With the majority of new apprenticeship starts now aged 25 and over, apprenticeships are increasingly being used to upskill existing staff, retrain career switchers and prepare future leaders.

Forward-thinking housing associations and construction firms, many of whom we’re already working with, are recognising apprenticeships as strategic investments rather than short-term interventions. Used well, they strengthen talent pipelines, improve retention, support succession planning and build organisational resilience.

As the sector looks ahead to 2026 and beyond – with ambitious housing targets, rising regulatory expectations and growing pressure on delivery – investing in people is not optional. It is fundamental to the sector’s ability to perform, adapt and succeed.

“Forward-thinking housing associations and construction firms are recognising apprenticeships as strategic investments rather than short-term interventions”

At PfP Thrive, our goal is simple: to push this agenda, bridge the gap between our sector’s struggles and the skills shortage and make learning accessible for everyone in housing or construction – be they 16 or 60.

We’re out of the traps already, working with housing and construction employers to map career pathways for all employees – from new entrants to seasoned professionals seeking to upskill. Our skills centre in Derby is already filled with learners, demonstrating the appetite for development, but there’s more to do.

For housing associations and construction firms alike, the message is clear: people must be the priority in 2026. Invest in them, nurture their growth, and your organisation will be better equipped to meet the challenges ahead, and to deliver the homes, communities and workforce the UK needs.

Jen Radcliffe, head of partnerships, PfP Thrive


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