UK one of the worst hit by labour shortages and rising costs according to survey
14 October 2024
A recent study by PlanRadar, a construction platform, has found that housebuilders are facing significant pressure, with 78% of them dealing with increasing building costs.
The report, taken from PlanRadar’s recent eBook, “Global Housebuilders’ Survey 2024”, surveyed 669 companies from 17 countries (Photo: AdobeStock)
The report shows that labour shortages are the top challenge for respondents, with 65% experiencing wage increases and over 75% citing project delays due to labour shortages, which is squeezing the profitability of projects.
According to 65% of respondents, investing in technology could enhance profitability through increased efficiency. However, the adoption of such technological solutions remains slow, despite recognising their potential.
The report, taken from PlanRadar’s recent eBook, “Global Housebuilders’ Survey 2024”, surveyed 669 companies from 17 countries, including the UK, to provide a snapshot of global housebuilding sentiment.
To navigate the complex housebuilding landscape and meet growing demand, survey respondents identified three primary challenges, with 48% citing labour shortage, followed by uncertainty around government policy and financial constraints. The shortage of skilled workers is also causing construction delays, with 76% of housebuilders reporting project delays affecting profitability during tough economic conditions.
Despite the challenges and a widespread decline in residential construction output, demand remains high says the report, with 75% stating that requests for services over the past year either increased or remained unchanged – a sentiment mirrored by 47% of UK respondents.
Additionally, 75% of UK housebuilders reported plans to explore new growth opportunities, spurred perhaps by Labour’s new housing targets and efforts to simplify planning.
Rob Norton, UK director of PlanRadar, said, “Rising prices and labour costs are squeezing housebuilders worldwide, and the UK is feeling the pressure. With tighter regulations and shrinking profit margins, the message is clear: adapt or fall behind. These findings are a glaring litmus test for how the UK market is faring, and while challenging, there is hope. It’s time for the industry to innovate and thrive.”
The full report is available here.
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