Skills and material crisis hitting London housing delivery

Aaron Morby 4 months ago

The Mayor of London has called on the Government to create a Coronavirus Recovery Visa to help combat worsening shortages of construction workers which have started to impact on house building delivery in the capital.

Mayor Sadiq Khan wants to see a new visa and greater funding from central Government as shortages and cost rises start to derail planned affordable housing programmes.

He highlighted growing concern after a planned development in south east London saw tender returns come in 45% above estimates.

He said a south London borough reported cost inflation spiking up to 17%, while a north east London borough reported average cost increases across the board at over 10%.

Khan said the visa should offer at least 12 months to work in the UK.

He said: “From City Hall, we have worked tirelessly to get London building again, but the twin effects of the pandemic and Brexit has hit both housebuilders and consumers hard.

“Put simply, materials and labour are needed to build homes. I call on the Government to create a temporary visa scheme for construction workers, which would go some way towards alleviating the debilitating double impact of Brexit and the pandemic on the building industry.

“I am also calling on ministers to provide the increased funding for genuinely affordable housing in London that I have long called for and which is needed now more than ever. Without bricks and mortar, and enough skilled workers, the excellent progress we have made in delivering the good quality and genuinely affordable homes that Londoners need is at risk of stalling.”

Brian Berry, chief executive of the Federation of Master Builders, said: “For over a year, small builders who deliver new housing and improve existing homes either through extensions or by retrofitting, have been struggling with the twin challenges of rising prices for essential materials and severe labour shortages.

“Today’s State of Trade Survey data from the FMB shows these pressures aren’t going away, and there are now added fears about the impact of rising inflation.”

G15 social housing body chair, Geeta Nanda, said: “The rising costs of materials we are seeing across our affordable house building projects is a real challenge. We’re working hard with the Mayor and local authorities to build the homes Londoners need, but we need to address both the shortage of skilled workers and the impact of inflation on our projects.”


Latest news

Higgins bags trio of East London passivhaus schemes

Partnership to build 220 affordable homes for Newham council
51 mins ago

Hunt starts for £250m Stockport 8 site developer

Town centre 8-acre site is earmarked for 1,200 homes, shops and leisute
4 hours ago

Plans in for £500m Hollow Mountain pumped hydro scheme

Work removing 2m tonnes of rock could start within two years
8 hours ago

Water industry revives PFI model for £1bn job

Vast Haweswater Aqueduct upgrade to pilot new DPC model, hailed as the future for water companies
10 hours ago

VolkerRail fined £550,000 after trench collapse

Court hears how two metre deep excavation was unsupported
11 hours ago

‘Ratty the Robot’ takes bite out of costly pipe inspections

Pipe-crawling tetherless robo-rat makes light work of complex underground inspections
10 hours ago

Graham gets green light for £124m M25 Junction 28

Consent allows work to start this Autumn on Essex junction upgrade
1 day ago

Six win £600m panelised housing DPS deal

Better Building alliance of 29 housing associations signs up manufacturers
11 hours ago

Watkin Jones reports record £2bn pipeline

Student rooms and BTR builder plans corporate name change in big rebrand
10 hours ago

Race starts for £500m Scottish zero carbon hospital job

Bidding starts for new University Hospital Monklands near Airdrie
1 day ago

Manchester airport taxis out £60m terminal 2 pier job

Bidding to start before the end of 2022 for project start early next summer
1 day ago

Plan for 1,100-home complex at Leicester factory site

Galliford Try investments plots Corah Factory transformation
1 day ago

Axed House by Urban Splash staff plan legal action

Ex-workers consult with lawyers following administration
1 day ago

Summer slowdown fears as latest contract award data droops

Latest Barbour ABI Snap Analysis paints uncertain picture
1 day ago

Farrans wins £39m Somerset recycling hub

Site preparation gets underway for Keynsham Recycling Hub
1 day ago

Balfour gets green light for £250m M25 junction 10

Autumn start for M25 junction 10/A3 Wisley interchange improvement scheme
4 days ago

Leeds plumbing contractor sinks with loss of 30 jobs

Dickinsons Plumbing and Heating goes down but renewables arm salvaged in sale
4 days ago

HS2 achieves first diesel-free construction site

Skanska Costain STRABAG JV runs Kilburn site with green kit
4 days ago

Administration confirmed at House by Urban Splash

160 jobs lost following "operational issues" at modular factory
5 days ago

Network Rail fined £1.4m after worker crushed by track machines

Judge highlights "many layers of failure" within site management
5 days ago

Kier picked for £350m Leatherhead regen plan

Property arm to draw up plans to redevelop two large town centre sites
5 days ago

Two seriously injured in London steelwork collapse

Two steel erectors left fighting for their lives after collapse at Ardmore site
6 days ago

Urban Splash modular staff start looking for new jobs

Work stops at House by Urban Splash factory and housing sites
6 days ago

Building facade specialist CMS goes into administration

Building envelope firm had turnover of £43m
6 days ago

Office work uplift returns construction output to growth

New commercial work drives output uplift for the first time since the pandemic
5 days ago

More suppliers wanted on £683m waste power plant

Meet the buyer event for North London Heat and Power Project: Register now
6 days ago

Vistry Partnerships lands £128m London flats deal

Legal & General signs up firm for 480-flats over five buildings in Wandsworth
6 days ago

HS2 Project Bank Accounts “not worth paper they are written on”

Subcontractors furious after payment protection promises evaporate in wake of Roadbridge collapse
6 days ago

Taylor Wimpey to tear down half-built £48m Hackney Wick scheme

Concrete frame to be demolished after discovery of "potential structural issue"
6 days ago

Data centre work lifts TClarke orders to record high

Orders hit £585m, more than £100m on last year
6 days ago

Contractor services