{"id":47017,"date":"2018-09-12T08:41:32","date_gmt":"2018-09-12T07:41:32","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=47017"},"modified":"2018-09-12T08:41:32","modified_gmt":"2018-09-12T07:41:32","slug":"sme-house-builders","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/sme-house-builders\/47017\/","title":{"rendered":"SME house builders fear skills shortage will hamper housing delivery"},"content":{"rendered":"

SME house builders predict that skills shortages in the construction industry will hinder housing delivery and eventually overtake access to finance as a bigger barrier to building new homes, according to new research by the Federation of Master Builders (FMB)<\/a><\/h2>\n

Significant results from the FMB\u2019s House Builders\u2019 Survey 2018, include:<\/strong><\/p>\n

\u2022 The percentage of SME house builders saying that a shortage of skilled workers is a major barrier to their ability to build more new homes rose to 44% (up from 42% in 2017);<\/p>\n

\u2022 A lack of available and viable land tops the list as the most commonly cited barrier (59%) to increasing housing delivery and almost two-thirds of SME house builders (62%) believe that the number of opportunities for small site development are actually decreasing (up from 54% in 2017);<\/p>\n

\u2022 Nearly half of small house builders (46%) say access to finance is a major barrier to their ability to build more new homes;<\/p>\n

\u2022 More than half (51%) of SME house builders view the planning system<\/a> as a major constraint on their ability to grow and \u2018inadequate resourcing of planning departments\u2019 was again rated as the most significant cause of delay in the planning application process for the third year in a row;<\/p>\n

\u2022 When asked to look ahead over the next three years, more firms cited skills shortages<\/a> as a likely barrier to growth than access to finance.<\/p>\n

Brian Berry, Chief Executive of the FMB, said: \u201cNearly half of builders believe the skills shortage is a major barrier to their ability to build new homes. The construction sector is heavily reliant on EU workers with just under one in ten workers in the sector born in the EU.<\/p>\n

\u201cBrexit, coupled with the end of free movement, threatens to further intensify the skills shortages we already face. 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<\/a>.<\/p>\n

\u201cIn order to combat this skills crisis, the construction industry needs to encourage more entrants into the industry and develop higher quality qualifications. It is critical therefore that the Government doesn\u2019t pull the rug out from under the sector by introducing an inflexible and unresponsive immigration system.\u201d<\/p>\n

Berry added: \u201cOur research also shows that the Government must continue to address the issue of access to finance for SME house builders.<\/p>\n

\u201cAlthough concerns over access to finance have eased slightly in recent years, in part thanks to the Government\u2019s funding schemes such as the Home Building Fund<\/a>, there is more that can be done.<\/p>\n

\u201cOur research suggests that it is the low percentages of project cost that builders are able to borrow that remain the greatest financial barrier to increasing their levels of house building. This latest research suggests that if firms were able to borrow 80%, rather than the current 60 to 65% of project cost, SME builders would be able to bring forward on average 40% more new homes.<\/p>\n

\u201cGiven the ambitious house building targets the Government is working towards, we cannot afford to ignore such a chance to significantly increase housing delivery.\u201d<\/p>\n

Berry concluded: \u201cA lack of available and viable small sites tops the list of frustrations for SME house builders for the fourth year in a row. Worse still, nearly two-thirds of these small builders believe that the number of opportunities for small site development are decreasing.<\/p>\n

\u201cHowever, the recent reforms to the National Planning Policy Framework<\/a>, which specify that 10% of a local authority\u2019s housing delivery must be on sites no larger than one hectare, will help to address this problem. This will help to speed up the delivery of homes and lead to a more diverse and resilient housing supply.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

SME house builders predict that skills shortages in the construction industry will hinder housing delivery and eventually overtake access to finance as a bigger barrier to building new homes, according to new research by the Federation of Master Builders (FMB)<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[285],"tags":[676,720,572,660,621],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-47017","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-hr-skills-news","7":"tag-construction","8":"tag-federation-of-master-builders","9":"tag-housebuilding","10":"tag-skills-shortage","11":"tag-sme"},"acf":[],"yoast_head":"\nSME 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