A shortage of skilled workers in housebuilding and the planning system is one of the factors hindering efforts to solve the UK's housing shortage, according to new research.

The Lloyds Bank Commercial Banking 'Building for Growth' report suggests a skills shortage within the housing supply chain is causing 'real concern' among developers.

According to the report, which surveyed the supply chain from SME contractors to major national developers, there are a number of issues preventing efforts to tackle the housing shortage.

These include slow planning decisions (46%), public opposition to development (42%) and lack of skilled workers (25%).

Nearly a quarter of participants (24%) said the skills shortage is the biggest challenge currently facing the industry. More than a third (35%) believe there is a lack of suitable candidates to fill existing and new jobs.


Overall, housebuilders said the skills shortage is mostly affecting electricians and site managers (34%), with architects following close behind (31%).

In a bid to address the problem, 31% of housebuilders are prioritising investment in recruiting apprentices.

When asked what one change they would support to solve the shortage, 23% of housebuilders said greater local authority support to promote and fund building projects, while the same figure suggested additional government support.

Schemes such as Stamp Duty reform and the Help to Buy equity were flagged by 73% and 63% respectively as having a positive impact on the housing crisis.

However, despite the challenges, developers were optimistic about the future, giving an average seven out of ten score when asked to rate their confidence in the success of the UK housebuilding industry.

Stewart Baseley, executive chairman, Home Builders Federation, said: "The outlook for housebuilders is more positive than it has been for some time, and the findings of this report reflect that. Output has increased significantly in response to the higher effective demand generated by a general improvement in the economy, and the Help to Buy equity loan scheme.

"A shortage of skilled people has become the biggest concern and the industry is investing massively in training.

"If a positive policy environment and a stable economy can be maintained, the industry will continue to grow to deliver the Government's ambition to build more homes and tackle our entrenched housing crisis."

(LM)