UK need to loosen immigration rules to boost housebuilding

November 27, 2024
PM Sir Keir Starmer and Deputy PM Angela Rayner are pledging to build 1.5million new homes over the next five years
Economists have warned that the Labour government will have to relax immigration laws in order to locate the additional half a million construction workers needed to reach its housing objective. To achieve their goal, ministers have suggested a revision to planning regulations and pledged to construct 1.5 million new homes over the next five years, or 300,000 annually. However, according to Capital Economics, the government will also require an additional 500,000 construction workers in England in order to reach their target. It is understood by Daily Dazzling Dawn that Minister Rushanara Ali can actively address this issue.This would be a 'struggle' at the same time as Prime Minister Sir Keir Starmer is pledging to reduce net migration to the UK.But thousands of Bangladeshi building workers could use this opportunity to come to the UK in this visa opportunity. If the government can take the initiative to give the right person the opportunity and stop the visa business, it would be really good for the UK government also.

In a new report, the researchers said ministers could consider 'carving out visas for construction workers' as it was 'unlikely' that domestic workers could fill the shortfall.'With 234,400 net additional dwellings in England in 2022/23, there is an annual shortfall of about 65,000 homes that need to be built for the Government to meet its homebuilding target of 1.5 million homes between 2025 and 2029,' the report said.'But even if the Government is successful in ungumming the planning process and 300,000 home approvals were granted each year, the risk is that there wouldn’t be enough construction workers to build the extra homes.'

Capital Economics noted how 'construction employment in England has been on a downward trend' over the past year.'The relationship between net additional dwellings and construction employment in England suggests that around 500,000 (29 per cent) more construction workers are needed, or 2.4 million in total, to meet the Government’s target of 300,000 new homes a year,' the report added.
'Existing labour shortages in the construction sector suggest this number of workers would be hard to find.'
The researchers added: 'What’s more, the Government’s pledge to reduce net inward migration means there is likely to be a smaller pool of migrant workers available.
'So, at a time when labour supply is already constrained, the Government’s ambition to reduce net inward migration will only make it harder for the Government to meet its homebuilding target.
'Of course, the need for more construction workers could be satisfied by the domestic labour force, but we think this is unlikely.
'Either way, to have a chance at meeting its homebuilding target the Government needs to ensure there are enough workers, perhaps by promoting training schemes and/or carving out visas for construction workers within total migration targets.'