House builders warn ‘challenging conditions’ threaten apprenticeship pipeline

It comes amid escalating fears over the construction skills crisis as figures last year showed 250,000 new workers are needed to help the government hit its target of 1.5 million new homes.

A key factor deterring small house builders is the high cost of employing an apprentice, with nearly a fifth warning this is a problem, the poll showed.

The ability of subcontractors to support apprentices until they are productive is an equally hard problem, the HBF found.

Just over one in 10 small house builders said there was also an ongoing challenges in finding suitable candidates. 

Nearly a year ago, the government announced it would spend £600m on training what it hoped would be up to 60,000 construction workers.

The spending is due to include £100m on 10 new Technical Excellence Colleges and £165m on helping colleges deliver more construction courses.

But the HBF has pointed to higher taxes, levies and policy costs due to new regulation like the Future Homes Standard impacting apprenticeship uptake, and claimed these costs are making it “economically impossible” to build in many areas.

A report in December from the HBF warned of a viability crisis, with planning permissions for new homes hitting a 15-year low amid growing red tape and affordability challenges.

Neil Jefferson, chief executive at the HBF, said: “This latest insight demonstrates the impact of broad market pressures on [smaller builders], slowing down housing delivery and preventing them from investing in their future – and the long-term talent pipeline.”

He added: “More needs to be done to mitigate the financial and operational risks that currently make it unviable for many small businesses to invest in junior talent.”

In May last year, the government identified bricklayers and carpenters as priority areas for training as part of a plan for 120,000 new opportunities aimed at young people.