A recent report by Places for People and the University of Cambridge highlights around 140,000 unfilled vacancies across the sector, a gap that is already slowing delivery across a range of schemes. The longer-term picture is even more concerning, with 750,000 construction workers expected to retire by 2036.

The age profile underlines the urgency. More than a third (35%) of the workforce is now over 50, compared with one in five (20%) under 30. Taken together, these figures point to a sector approaching an inflection point, shifting from a shortage to a constraint that could limit what is delivered in the years ahead, particularly for SME developers who rely on predictable programmes and the availability of skilled labour.

This is not just about today’s numbers

The skills issue also has deeper roots. For generations, getting a trade and buying a home were seen as the route to stability, shaped by an era when job security was limited and tied housing was common. As protections improved and work patterns changed, that pressure eased and fewer young people felt the need to learn a skilled trade. It was a gradual shift, but it thinned the pipeline long before the more recent shocks.

The roots of the current skills shortage go back much further than today’s headlines. After the 2008 financial crisis, many construction firms cut apprenticeships and reduced training investment to stay afloat. Brexit then limited access to overseas labour, and Covid prompted a further outflow of skilled workers who did not return.

At the same time, more young people have chosen white-collar or digital careers. The result is a weakened pipeline that has been under pressure for more than a decade and the impact is now clear across the sector.

A global labour challenge

It is important to recognise that this is not an issue confined to the UK. As the Royal Institution of Chartered Surveyors has noted, construction relies on an international skills pool, meaning we are competing with other nations for the same labour. That competitive pressure matters at a time when the UK is asking the industry to deliver more homes and infrastructure.

Policy decisions that affect migration will inevitably influence our ability to attract and retain construction talent. If we are serious about increasing delivery, the UK must be seen as an attractive place to live and work for skilled trades and construction professionals.

Building the next generation

Competing for a shrinking pool of existing workers will only take us so far. Long-term progress depends on widening the talent base here at home and supporting the next generation into construction.

The industry has made real efforts to improve the perception of construction as a career and to open doors for people from different backgrounds. That shift matters. A more diverse workforce brings broader thinking, stronger problem solving and greater innovation, all of which contribute directly to more effective delivery.

•   The Finance Professional Show 2025: The Video
•   Fewer parents encouraging children to explore construction careers
•   Former skills minister backs FMB campaign for mandatory licensing

Within our own development finance team, we have seen how a broader mix of experience and perspectives strengthens decision making. It helps challenge assumptions and gives us a clearer view of the practical pressures developers are working under. It does not solve the sector-wide skills shortage, but it shows how intentional investment in people can make a meaningful difference.

However, developing that talent requires more than goodwill. Long-term investment in training is essential if we are to attract and retain new entrants. That means sustained support for apprenticeships, technical education and clearer pathways into skilled roles. Short-term initiatives will not deliver the workforce the industry needs.

The role of technology

Technology has already helped the sector improve efficiency by automating elements of project management and design. Attracting a new generation of digitally minded workers will accelerate that progress, particularly where better use of data and coordination can support delivery.

We must also be realistic about the limits of technology. Skilled trades such as bricklaying, electrics and joinery remain fundamental to getting buildings out of the ground. Technology can support and complement that work, but it cannot replace it. A more productive sector depends on a blend of digital capability and a larger workforce with the skills required to build.

Why this matters now

The skills shortage would be concerning even during a period of strong delivery. Instead, it sits against a backdrop of slowing activity. The most recent official data shows just over 230,000 new homes delivered in England between July 2024 and September 2025. That is below the level required to meet national housing ambitions. With both completions and planning approvals down, progress appears to be slowing rather than strengthening.

For SME developers, who play a vital role in bringing forward smaller and more complex sites, the availability and cost of skilled labour is now a defining factor in viability. Skills influence build programmes, cashflow and how contingencies are planned. Ultimately, they shape whether schemes are delivered at all. If we want planning consents to turn into completed homes, skills cannot be treated as a secondary issue.

A shared responsibility

Addressing the skills shortage is not something the industry can do alone. Developers, contractors, training providers, brokers, lenders and government all have a contribution to make.

Developers and contractors can widen access and invest in training. Brokers can help ensure funding structures reflect realistic build timelines. Lenders can recognise how labour availability affects delivery risk and support schemes with practical phasing and contingencies. At HTB, we see the impact of skills availability every day in how schemes are phased and costed, and in the importance of clear, realistic project structures that reflect the pressures developers face.

Progress also depends on visible leadership from government and sustained investment in the skills pipeline. The sector needs long-term commitment, not short cycles of short-term initiatives.

The skills shortage is already shaping what can be built, where and at what pace. If it continues to be treated as a peripheral issue, it will become one of the defining constraints on delivery. Address it seriously and it can become the foundation for a stronger and more resilient development industry.