Mayor of London announces £88.6m construction skills investment

By Danny BallPublished On: July 29th, 2026Categories: News, Top Stories

The Mayor of London, Sadiq Khan, has announced an £88.6 million investment to expand construction skills training across the capital, as the industry seeks to address labour shortages and support the delivery of hundreds of thousands of new homes.

Funded by the Department for Education (DfE), the package will provide more than 20,000 construction training places, industry placements and investment in further education colleges to help build the workforce needed to deliver future housing, infrastructure and retrofit projects.

The announcement comes as London prepares for a significant increase in housing delivery under the Mayor’s draft London Plan, which proposes up to 558,000 new homes by 2037, while the sector continues to contend with rising construction costs, viability pressures and skills shortages.

Construction workforce shortages remain a key challenge

According to the Construction Industry Training Board (CITB), Greater London will require around 26,500 additional construction workers over the next five years to meet demand from residential, commercial and infrastructure projects.

The greatest shortages are concentrated in skilled trades including bricklaying, carpentry, plumbing and electrical installation, alongside growing demand for retrofit and low-carbon construction skills.

The new funding is intended to strengthen the capital’s construction skills pipeline by improving training capacity and strengthening links between education providers and employers.

The construction skills package includes:

Up to £43 million for further education colleges to improve construction training facilities and equipment.
A £2.5 million innovation fund to develop new construction training programmes with industry.
More than 2,700 industry teaching days, enabling construction professionals to work directly with college learners.
The appointment of New City College and South Bank Colleges as Technical Excellence Colleges to lead construction and clean energy training across London.

The investment builds on the Mayor’s Inclusive Talent Strategy, which aims to align technical education more closely with employer demand.

Alongside the construction package, the Greater London Authority has announced a further £3.2 million to establish virtual sector hubs covering the built environment, creative industries and life sciences.

Industry welcomes investment but warns housing delivery barriers remain

Mayor of London Sadiq Khan said: “We can’t build the homes Londoners desperately need without the skilled workforce to deliver them. That’s why I’m investing an unprecedented £88.6m to train London’s next generation of construction workers, helping thousands of Londoners develop the skills they need to access good jobs while tackling critical skills shortages across the industry.

“This landmark investment will deliver more than 20,000 construction courses, alongside industry placements and major investment in our colleges, ensuring London has the skilled workforce needed to build more homes and make existing homes more energy efficient.

“By bringing employers and training providers together, we can give Londoners clearer routes into good careers while giving businesses the talent they need to grow – helping us to build a greener and more prosperous London for everyone.”

Home builders highlight need for stronger housing pipeline

The Home Builders Federation (HBF) welcomed the funding but said increasing the construction workforce must be matched by measures to support housing delivery.

Andy George, Director of Industry Attraction and Skills at the Home Builders Federation, said: “Today’s announcement is positive news for the home building industry’s future workforce.

Colleges, learner placements and strong employer-education partnerships will be critical to scaling up housing output to meet the Mayor’s ambitions.

“Through the Home Building Skills Partnership, industry is already working closely with colleges and training providers to give young people practical, work-ready skills, including through our Partner a College programme and NHBC Training Hubs.

“However, these young people will need homes to build and move into, and London’s housing pipeline has dried up, with home building investment at alarmingly low levels. Today’s commitment to growing the workforce is encouraging, and we look forward to working with the Mayor and central Government to remove the barriers making it harder to build and buy in the capital.”

Construction skills central to housing delivery

The announcement reflects growing recognition across the construction sector that expanding the skilled workforce will be critical to meeting future housing and infrastructure targets.

Alongside investment in training facilities, employer partnerships and technical education, industry bodies continue to argue that planning reform, improved project viability and greater support for housebuilding will also be needed if London is to deliver the volume of new homes outlined in the Mayor’s long-term housing strategy.