Housebuilders are determined to grow and use innovate new methods to boost the housing supply according to Lloyd’s Bank.
The Lloyds Housebuilding Report delves into how the construction industry is combatting current challenges, including skill shortages and Brexit uncertainty. As well as, looking at how housebuilders are protecting themselves for the future. Here is a breakdown of the findings:
Exploring new methods of construction
Companies of all sizes are investing in new building techniques, including modular housing (68%) and penalised systems (56%). Over the next five years, investment is set to rise as housebuilders look to use these methods as a way of improving efficiency, growing margins and improving construction standards
Innovation is also supporting the delivery of sustainable homes with 82% of firms saying they are more focused on this issue than ever before.
Tackling the skills shortage
There is no doubt as to why 44% of those surveyed believe Brexit is the biggest challenge for the industry. The report found that the UK’s exit from the EU is worsening skills and labour shortages, with half stating the leave is making recruitment harder for specific roles. While a quarter (26%) said that access to EU labour is a key challenge for their business.
On a positive note, it’s reassuring to find that two thirds (66%) of firms believe that there are currently enough skilled workers to fill roles in the sector, both nationally and regionally. Plus the industry has plans in place to tackle the skills shortage, as 69% of firms are investing in staff training, and half (51%) are setting up apprenticeship programmes.
SME Housebuilders growth ambitions
Firm’s growth ambitions remain strong, over the next five years housebuilders could see a turnover growth of up to 29%. But, they can also expect to invest 31% of their current annual turnover back into their business.
Throughout the report, firms ooze confidence with big plans to create more 139,000 new jobs in the next five year.
The future is bright:
For all House builders out there, the industry might be faced with challenges, but great opportunities are all around. Through reaming strong and upbeat, who knows what accomplishments could be achieved.
“It is inspiring to work alongside an industry focused on innovation and overcoming multiple challenges as it looks to move past the uncertainty caused by Brexit to deliver growth and the new homes the nation badly needs” – David Cleary, Regional Director and National Head of Housing.
Read the full report here