The UK is suffering a severe housing shortage. As a result, the construction industry faces a tough challenge to build enough homes to meet demand.
Persimmon says it expects to build 20 per cent more homes this year than last year, as Help to Buy boosts demand from buyers. Indeed, the scheme makes up 40 per cent of Persimmon’s home sales, with 2014’s stock all sold.
A short of skilled workers, such as bricklayers, though, is holding back the industry, says the company.
Indeed, a new report from Markit/CIPS shows that construction output in the uK is now rising at its slowest pace for five months. Construction companies have stepped up their staffing levels significantly in October, with 55 per cent anticipating a rise in output over the coming 12 months, but Head of Persimmon Jeff Fairburn says there will be a squeeze on the available workers.
“Because all the developers are pushing hard … there’s going to be a squeeze on skills – bricklayers, joiners and the like,” he told the Guardian. “All of the trades are affected. We are not building quite as fast as we’d like to.”
As a result, Persimmon is now training up ex-military personnel along with school-leavers to help cover the gaps. October data indicated a strong overall increase in UK construction output, according to the report, but the pace of expansion was the weakest since May, led by the slowest upturn in residential building for 12 months.
Source: The Movechannel