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How to address the labour crisis threatening London’s social housing
An alarming labour and skills shortage is threatening the maintenance, retrofit and provision of social housing in London. Here’s what major new research reveals about the scale of the problem and the strategy that could solve it, writes Elly Hoult, chief operating officer and deputy chief executive at Peabody
Elly Hoult is chief operating officer at Peabody, and vice-president of the Chartered Institute of Housing
As the new government takes the helm and is already putting housing at the top of its agenda and talking about building more homes, London’s social housing sector is at a critical juncture.
The recently released Building Skills for the Future report by the London Homes Coalition highlights an alarming labour and skills shortage that threatens the maintenance, retrofit, improvement and provision of social and affordable housing in the capital.
I am co-chair of the group, and our analysis reveals a dire need for 10,000 workers annually to maintain existing homes and up to 31,000 over the next five years to support new build homes. With the coalition’s pipeline alone representing about 10% of London’s overall construction workforce, this shortfall is significant.
The report warns of a potential deficit of around 2,600 skilled workers for the coalition alone, particularly in trades such as roofing and carpentry, where demand is already outstripping supply.
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Current recruitment trends paint a bleak picture. The research projects that we have just 85% of the required roofers and 78% of the needed surveyors over the next five years. This shortage is exacerbated by the overlapping demands of low-carbon retrofit projects and the asset management needs of London’s housing associations, stretching the available workforce even thinner.
A quarter of London’s new homes are built by housing associations, and we are responsible for maintaining and investing in more than 700,000 homes across the country. But the workforce we’re losing through retirement is not being replaced by newly trained professional tradespeople. The provision of genuinely affordable, warm and safe housing in the capital depends on us addressing this growing challenge.
The social housing sector is a significant economic driver, investing billions annually in home improvements and maintenance, creating jobs and adding community value. Yet, the impending labour shortage poses a severe risk to these contributions. Addressing this crisis requires sector-wide collaboration from all of us, proactive engagement with education providers, and co-ordinated efforts with government bodies.
The Building Skills for the Future report proposes three strategic solutions.
First, we need national promotion of the opportunities available. Highlighting the benefits of working in social housing, engaging young people, and targeting under-represented groups can attract fresh talent. Ethnic minorities are vastly under-represented and while women make up a quarter of the sector, in the trades it’s a woeful 2%.
We’re missing out on talent and resources. Careers in these trades offer excellent pay and progression, yet these opportunities do not reach all of London’s diverse communities.
We must also remove barriers to apprenticeships and skills development. Reviewing entry requirements and promoting existing programmes in collaboration with education providers can enhance training provision. This will help build a skilled workforce ready to meet future demands.
Finally, providing long-term training programmes that benefit communities requires stable funding and a clear work pipeline. This would enable sustained efforts to build a robust talent pipeline.
“Addressing this crisis requires sector-wide collaboration from all of us, proactive engagement with education providers, and co-ordinated efforts with government bodies”
There is unfortunately no quick fix. We need a long-term plan with organisations across the sector working together to bring about change. At Peabody, we have partnered with YouthBuild UK to deliver a 13-week construction skills training programme in south-east London. The programme empowers disadvantaged young people, aged 18 to 24 years old and at risk of social exclusion, into the construction industry.
Previous graduates have begun apprenticeships in the industry or landed jobs in areas including site management, scaffolding and carpentry.
The Peabody Academy is offering apprenticeships to colleagues in all areas of our organisation and we hope to open this up to residents in the future. We also have a 20% social value weighting on our procurement process, which encourages our contractors to offer skills and training opportunities.
We’re making every effort to encourage people into a career in housing and construction and hope to see initiatives like this replicated across the sector. We must find ways to get more people from all backgrounds into construction jobs while addressing the skills gap that increasingly becomes a barrier as we keep investing in residents’ homes and build more.
The urgency of this situation cannot be overstated. Without immediate and co-ordinated action, London’s social housing sector will struggle to meet its commitments, risking the provision of essential, affordable housing for the city’s residents.
It is time for all stakeholders – government, education providers and industry leaders – to come together and forge a sustainable path forward. The future of London’s housing, and the well-being of its residents, depends on it.
Elly Hoult, chief operating officer and deputy chief executive, Peabody
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