Labour shortage holds up UK construction growth

Labour shortage holds up UK construction growth

Uk Construction Growth

In a recent survey of housebuilders by Knight Frank it has emerged that around 73% believe that it is the lack of labour that is seriously holding things up. This is a legacy from the recession where high numbers of construction workers left the industry and now the building sector is struggling to find the right people to hit new build targets.

In light of the massive supply and demand issue across the UK with regards to property, housebuilders have been tasked to increase the supply of affordable new homes but they are being held up by the labour shortage.

This problem is compounded by issues of build cost inflation and the lack of available land to build upon (around 57% of survey respondents indicated that they have not seen an increase in land being made available for building).

For more information about the state of housebuilding in the UK, check out the Knight Frank report here http://content.knightfrank.com/research/297/documents/en/2016-3851.pdf

With housing supply in the UK being critically low, property investors have seen the demand for rental properties multiply significantly and, in turn, the rise in monthly rents has made buy-to-lets a lucrative investment for landlords

Tags: construction