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Think tank calls for skilled migrants to fuel Rayner’s housebuilding boom

August 31, 2024

Angela Rayner, the Deputy Prime Minister and Labour’s no-nonsense champion of workers' rights, seems intent on delivering her promises with a zeal that would make even the most ardent trade unionist blush.

To achieve Angela Rayner’s ambitious housebuilding goals, Britain must consider opening its doors to more skilled migrants, according to a new report by the Institute for Government (IfG).

The report suggests that to meet the most significant housing targets since the 1960s, the Housing Secretary should relax immigration policies, potentially adopting visa models similar to those used for seasonal agricultural workers.

Sophie Metcalfe, a researcher at the IfG, emphasised the need for a comprehensive construction skills plan, warning that the recent downturn in housing has led to a severe shortage of construction workers. “The new Government has bold plans which set out encouraging first steps, but its housebuilding programme poses huge delivery challenges as much as it does political ones,” Metcalfe said.

The IfG report highlights how the housing sector’s reliance on subcontractors, who often collapse during market downturns, has exacerbated labour shortages. The construction industry has been struggling since 2022, with major housebuilders unable to scale up rapidly enough to meet the government’s targets.

Recent data from the Office for National Statistics revealed housing starts fell to a decade low of 162,350 in the year to March, while the Construction Skills Network projects that the industry will need an additional 250,000 construction workers by 2028. However, the Government may face resistance to increasing migrant labour due to public concerns over immigration.

The IfG proposed that Skills England, a new public body, should be tasked with developing a strategy to address construction labour shortages. Nonetheless, the report recognises that easing visa rules could provide a short-term solution, suggesting a system where construction workers could be sponsored similarly to seasonal agricultural workers.

The Conservative government has already added several construction roles, such as plasterers, carpenters, and bricklayers, to its shortage occupation list, allowing for reduced visa fees and salary thresholds. However, the IfG’s report calls for further action, recommending that the Government keeps the same housing secretary in place throughout this Parliament to ensure consistent leadership.

The think tank also urged Ms Rayner to maintain her commitment to prioritise national housebuilding targets over local objections, as the construction industry grapples with labour shortages and the need for swift action to deliver the Government’s housing ambitions.