A critical shortage of construction workers is casting doubt on the British government’s ability to meet its ambitious target of building 1.5 million homes in England by 2029—an initiative

designed to spur economic growth.

Prime Minister Keir Starmer’s Labour Party, which won the July election, has prioritized boosting growth, upgrading infrastructure, and addressing shortcomings in public services. Construction, a sector that accounts for 6% of the country’s GDP, is fundamental not only to economic expansion but also to supporting other industries.

Developers have welcomed the government’s proposals to reform the planning system and make more land available for housing projects. However, many warn that these goals will remain unattainable unless the country tackles the pressing challenges of labor and skills shortages.

The shortfall has sparked debate over whether Britain should revisit its post-Brexit immigration policies and invest more heavily in training programs to attract younger talent to the industry’s aging workforce.

“We don’t have enough workers to meet current demand, let alone achieve the 1.5 million homes target over the next five years,” said Colin Cole, CEO of Lioncourt Homes. He added, “This is a significant issue.”

Cole explained that Lioncourt’s team of 1,000 workers, predominantly subcontractors, is already stretched to capacity. “We’ll struggle to find enough contractors to keep up with demand,” he said. The company plans to launch its second-largest housing development next month in Worcester, a city in central England.

Lioncourt Homes aims to increase its output from 165 homes in the past year to 250 in the 12 months ending March 2026, and to 500 homes annually over the subsequent five years. These targets, however, were set before the government unveiled its new reforms.

Mounting challenges

The UK has faced a persistent shortage of job candidates, exacerbated by the dual impact of the 2016 Brexit vote and the COVID-19 pandemic. Job vacancies remain significantly higher than pre-pandemic levels, and the construction sector faces additional pressure from its aging workforce.

According to the Construction Products Association, the industry is expected to lose 500,000 workers to retirement over the next 10 to 15 years, amounting to approximately 25% of its current workforce.

To sustain the momentum of Britain’s housing ambitions, experts say the government must urgently address these structural challenges. This includes rethinking immigration rules to attract skilled foreign labor and ramping up initiatives to train the next generation of workers to revitalize the sector.