Encouraging skilled migrants is key to Rayner’s housing ambitions, think tank says

To meet Angela Rayner’s ambitious housing targets, Britain must consider opening its doors to more skilled migrants, according to a new report from the Institute for Government (IfG).

The report suggests that to achieve key housing targets since the 1960s, the Housing Secretary should relax immigration policies and possibly adopt visa models similar to those for seasonal agricultural workers.

Sophie Metcalfe, a researcher at the IfG, highlighted the need for a comprehensive construction skills plan and warned that the recent housing construction recession has led to a serious shortage of construction workers. “The new government has bold plans that are taking encouraging first steps, but its housing program poses both major and political challenges,” said Metcalfe.

The IfG report highlights how the housing sector’s reliance on subcontractors, who often collapse during market downturns, has exacerbated labor shortages. The construction sector has been struggling since 2022, with major housebuilders unable to scale up fast enough to meet government targets.

Recent data from the Office for National Statistics shows that the number of new homes built in the year to March fell to the lowest number in a decade at 162,350, while the Construction Skills Network expects the sector to employ a further 250,000 construction workers by 2028 will need. However, the government may face resistance to increasing migrant workers due to public concerns about immigration.

The IfG proposed that Skills England, a new government agency, should be tasked with developing a strategy to tackle the construction workforce shortage. Nevertheless, the report acknowledges that relaxing visa rules could provide a short-term solution, and suggests a system where construction workers could be sponsored in the same way as seasonal agricultural workers.

The Conservative government has already added several positions in the construction sector, such as plasterers, carpenters and bricklayers, to the list of shortage occupations, which could reduce visa costs and salary thresholds. However, the IfG report calls for further action and recommends that the government retains the same Housing Minister across parliament to ensure consistent leadership.

The think tank also urged Rayner to keep her pledge to prioritize national housing targets over local concerns, as the construction sector struggles with labor shortages and the need for swift action to deliver on the government’s housing ambitions.