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Nearly half of small and medium-sized builders (SME) now believe a post-Brexit skills shortage will hamper their ability to build new homes, according to new research.
A survey by trade body the Federation of Master Builders (FMB), which represents SME house builders, found that 44% of its members believe a shortage of skilled workers will be a major barrier to building new houses. This figure rose from 42% in 2017.
The construction industry is heavily reliant on EU labour, particularly in London where around three in 10 workers are from EU countries.
“Brexit, coupled with the end of free movement, threatens to further intensify the skills shortages we already face,” said Brian Berry, chief executive at FMB.
“Given that the UK will leave the EU in less than six months, house builders are understandably concerned that skills shortages could worsen and choke housing delivery.”
Mr Berry called on the construction industry to encourage more entrants into the industry and develop higher-quality qualifications to help tackle the skills crisis.
He added: “It is critical therefore that the government doesn’t pull the rug out from under the sector by introducing an inflexible and unresponsive immigration system.”
The government’s much-awaited immigration white paper was due to appear in summer 2017 but has been hit by delays. New Home Secretary Sajid Javid is reportedly waiting until at least this month’s Migration Advisory Committee report is published before producing the document.
Despite the concerns over Brexit, the survey revealed that a lack of available and viable land tops the list as the most commonly cited barrier for building more houses.
And nearly two-thirds of SME house builders (62%) believe the number of opportunities for small site development are actually decreasing (up from 54% in 2017).
Meanwhile, nearly half of small house builders (46%) say access to finance is a major barrier to their ability to build more new homes.
Mr Berry added: “Although concerns over access to finance have eased slightly in recent years, in part thanks to the government’s funding schemes such as the Home Building Fund, there is more that can be done.”
A new £1bn fund, launched by Barclays in conjunction with the government, was opened today allowing SME developers access to borrowing at a rate of 80% loan to cost, compared to Barclays’ normal rate of 65% loan to cost.