Builder wages surge by 6% due to skills shortage

Mortgage Introducer

January 14, 2016

new homes

Three in five (61%) property professionals have reported rising wages as the UK’s skills shortage rages on.

Average construction earnings have risen by more than 6% in the year to October 2015 – a marked increase on the average UK wage rise of under 2%.

A labour shortage was seen as the most significant barrier to growth in the last quarter of 2015 by two thirds (66%) of construction professionals.

Bricklayers and quantity surveyors were in the shortest supply, with 62% and 60% having difficulty finding them.

Simon Rubinsohn, RICS chief economist, said: “While workloads are still growing at a relatively healthy pace, labour shortages in the construction sector are causing delays at different stages in the development process and leading to significant problems with project planning. More than 60% of our survey respondents said that these resulting planning delays were an impediment to growth.

“That said, industry wages are becoming increasingly attractive, and I would hope that over time this will encourage skilled workers to return to the sector, as well as drawing school leavers and graduates towards construction industry careers.”

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