
"Long-term growth exists, but in the past year, the sector has stalled and even slipped in residential construction"
- Siân Hemming-Metcalfe - Inventory Base
UK housebuilding appears to be losing momentum, with new figures revealing that construction sector employment has barely grown in the past year, despite a modest increase over the last five years.
Analysis by Inventory Base shows that employment in the construction industry reached an estimated 380,200 in 2024. This represents a marginal increase of just 0.7%, or 2,615 employees, compared with 2023. Over the longer term, however, employment has risen by 10.6% since 2019.
The bulk of this long-term growth has come from the utilities segment, particularly electricity and telecommunications construction. Employment in this area has more than doubled over five years, and has grown 15.7% in the past 12 months alone.
Other sub-sectors have also shown significant five-year gains, including roofing activities, which grew by 25.7%, and the construction of residential and non-residential buildings, which rose by 22.2%. These figures suggest a recovery in building activity following the pandemic.
However, signs of stagnation have emerged in the past year across several key areas of residential construction. Sectors such as plumbing, heat and air conditioning installation (2.3%), electrical installation (1.4%), floor and wall covering (1.1%), and plastering (1.1%) have posted only marginal employment gains.
Other segments have seen even flatter performance or declines. Joinery installation rose by just 0.3%, while employment in building project development increased by 0.1%. Painting and glazing saw no change at all, and other building completion and finishing fell by 6.9%.
One of the more concerning data points for government targets is the 0.1% decline in employment in residential and non-residential building construction over the past year. This could complicate efforts to meet the government’s pledge to deliver 1.5 million homes over the course of this Parliament, the equivalent of around 370,000 homes per year.
“The Chancellor has been promising bold action on housebuilding, but current employment data tells a more cautious and less optimistic story,” said Sián Hemming-Metcalfe, operations director at Inventory Base. “Long-term growth exists, but in the past year, the sector has stalled and even slipped in residential construction."
“Meeting housing targets takes more than headlines; it demands investment in skilled labour and practical support. Without meaningful intervention, supply will keep falling behind demand, piling pressure not just on house building, but also on the rental market, already strained by high demand and limited availability. More homes could start to ease that pressure, giving tenants more choice and tempering rents, but only if homes are accessible to renters and not just owner-occupiers.
“With the Autumn Budget only months away, it’s the Prime Minister’s chance to prove that he and the Chancellor truly are ‘in lockstep’ and prepared to deliver.”