Tackling the skills shortage in the UK property sector 

Did you know that almost two million UK households on low-incomes are currently living in unsuitable conditions?¹ We’re talking about thousands of individuals facing issues such as damp, mould, and overcrowding with nearly three quarters of people surveyed on UK social housing waiting lists across the UK experiencing problems with their accommodation that was harmful to their health.

The problem is, there’s just not enough genuinely affordable homes being built or repurposed. The UK Government has pledged to deliver 1.5 million homes over the next five years and the biggest increase in social and affordable housebuilding in a generation – which would represent a significant step-up from current production levels.² Yet there’s a severe skills shortage in the sector as the industry is struggling to attract talent with the enthusiasm and know-how to innovate, meaning demand isn’t being met. 

This is why we recently renewed our partnership with Regeneration Brainery – an award-winning, not-for-profit academy for youngsters which aims to tackle the skills shortage by boosting diversity in the property and construction industry, and providing young people with hands-on experience.

How bad is the UK housing sector skills shortage?

Before we think about the skills needed to meet the government’s 1.5 million homes commitment, a report from Skills England – the new arms-length body established to tackle skills shortages and support sustained economic growth in the UK – highlights some eye-opening forecasts from the Construction Industry Training Board (CITB).

The CITB forecast that the construction sector will need an additional 252,000 workers between 2024 and 2028 – an annual recruitment rate of 50,300 workers - just to keep up with the UK’s current construction output.³

Latest figures from the Office of National Statistics also reveal that, despite an average of 38,000 vacancies advertised per year, almost a third (31%) of construction employers said that finding suitably skilled staff was a key challenge. The Skills England report further highlights that the construction industry is facing significant skills shortages, particularly in skilled trades such as bricklaying, plumbing, and electrical work.

We shouldn’t underestimate the potential impact that the lack of new housing supply – particularly social housing – is having on the economy and wider society, either. In fact, data from University College London shows that building 90,000 genuinely affordable homes per year could save the UK Government £1.5 billion annually in homelessness costs. This saving comes from improved health benefits, reduced homelessness, and giving children a better education by providing a safe, secure place to study.⁴

How is the skills gap affecting the UK’s net zero progress? 

The lack of a well-trained labour force within the property sector is also having a negative effect on the UK’s journey to net zero. OVO Energy found that less than one in ten people receive green skills training at work, despite three in five recognising that obtaining green skills will improve their future career prospects.⁵ 

To properly tackle this skills gap, then, the industry must think long-term and ensure the right leaders are in place both today and for the future. Many studies have highlighted the proportion of workers within the sector who are approaching retirement age, with around 45 being the median age for a construction worker.⁶

Our partnership renewal with Regeneration Brainery

Attracting a wide and diverse talent pool is one of the reasons why we partnered with Regeneration Brainery in the first place. Regeneration Brainery has won multiple awards for its delivery of social impact, and has been named as UKREiiF charity partner for a second consecutive year. Since its creation in 2017, it’s worked with over 6,000 students – or Brainees – finding hands-on work experience and meaningful networking opportunities with property pros. 

Over a third of Brainees have joined the industry or taken on an industry-specific educational opportunity. Over 18,000 volunteering hours have been given by over650 industry mentors based right across the UK.⁷

So far in 2024, the not-for--profit has hosted events in five locations including London, Manchester, Liverpool, Birmingham and Stoke-on-Trent. The ambition is to expand into Leeds, Bristol, Newcastle and Sheffield in 2025 and into all four home nations by 2026. Regeneration Brainery has recently established an Advisory Board made up of leading industry professionals to provide strategic guidance as the enterprise looks to scale-up further. 

The importance of diversity within the UK real estate industry

The National Housing Federation has found that executive positions in the housing association sector do not reflect the ethnic diversity of the workforce.⁸ And a survey from Real Estate Balance, a campaigning organisation dedicated to improving diversity in the workforce of which the Group is a member, found that 29% of respondents reported classicism.⁹ 

Diversity encourages new ways of thinking and, ultimately, will help the sector reflect the society we live in. With this in mind, Regeneration Brainery offers young people from a broad range of backgrounds the chance to pursue a career in the property sector, allowing businesses to benefit from this diversity of ideas. Currently, 60% of Brainees are from an ethnic minority background, and 87% meet at least one social mobility criteria, aimed at addressing the lack of diversity from under-represented groups, including those from lower income backgrounds. 

The programme gave Abiola the confidence needed to secure a role as Graduate Development Manager at Muse Places – making him Muse’s first ever non-cognate graduate employee.

Abiola said: “Regeneration Brainery has given me so many opportunities to connect with the property industry’s finest. It has helped me nurture my interest in property development and the future of Greater Manchester specifically.”

“I now want to inspire, mentor, and support the next generation of built environment professionals. I plan to use my lived experience and unique perspective to provide value to Brainees on their journey into the property industry.”

Looking ahead

An assessment of housing need commissioned by our charity partner Crisis and the National Housing Federation (NHF), and carried out by Herriot-Watt University, estimates that 380,000 new homes need to be built across Britain each year – of which 100,000 should be at social rent.¹⁰

Attracting new talent and closing the current skills gap must be addressed as an immediate priority. We, along with Crisis, have called for one million more homes for social rent over the next decade. To date, we have helped Regeneration Brainery reach over 6,000 young people.

And a third of their students have been helped into the industry through employment, apprenticeships, and work placements. We are proud of our partnership with Regeneration Brainery and will continue to work with them to provide young people from diverse backgrounds with an introduction to the property world, helping to inspire the next generation of talent whilst bridging the future skills and diversity challenges in the sector.