Skills Shortage and rising costs driving delays in UK home improvement projects

By Danny BallPublished On: April 1st, 2026Categories: Top Stories

Homeowners planning renovations, extensions or repair work are facing increasing delays and higher costs, as new industry data highlights ongoing pressures in the UK construction sector.

Research from the Federation of Master Builders and Chartered Institute of Building shows that 72% of small and medium-sized building firms reported a severe shortage of skilled tradespeople in the second half of 2025, up from 61% earlier in the year.

The shortage is having a direct impact on project delivery, with 49% of builders reporting delays to jobs. In some cases, projects are being cancelled entirely, with 22% of firms stating they have been forced to withdraw from work due to a lack of available labour.

Labour Shortages Impact Project Timelines

The findings highlight the scale of the skills gap across the sector, with shortages affecting trades such as carpentry and bricklaying. For homeowners, this is translating into longer waiting times for projects ranging from kitchen refurbishments to home extensions.

Demand for home improvement work remains strong, with 70% of builders reporting they are undertaking both renovation and extension projects. However, capacity constraints mean many firms are operating with significant backlogs.

Alongside labour shortages, cost pressures remain a key issue. The survey found that 75% of builders experienced increases in material costs in the second half of 2025, with 61% passing these increases on to clients.

Brian Berry said: “Homeowners are caught in a perfect storm of rising costs, a lack of availability and affordability with the cost of living putting a strain on people’s everyday lives.

“When you can’t find a skilled carpenter or bricklayer, projects grind to a halt. When you do find one, you’re likely going to be paying more than you would have a year ago.

“The construction skills shortage isn’t just an industry issue – it’s also impacting homeowners. The underlying demand for building work remains strong, which is encouraging, but long term skills issues will continue to put pressure on builders and consumers alike.”

Industry Advises Caution on Contractor Selection

Victoria Hills added: “While it’s positive news that small and medium construction businesses are busy, for homeowners this can mean waiting longer for their projects to start and finish, which combined with rising costs, can be frustrating.

We strongly advise however that anyone planning a project doesn’t simply opt for a contractor that undercuts others on price and says they can start at short notice, as this can often lead to problems.

Waiting for a competent and experienced company that is approved by a body like CIOB or FMB, has positive reviews or has been recommended to you by friends or family, means you’re more likely to get the outcome you want that will be worth waiting for.

“A lack of skilled workers continues to be a big concern across the construction industry and, while we hope the impact of new initiatives such as Construction Skills Bootcamps and Housebuilding Skills Hubs will soon be felt, we’d like to see more from the Government to raise awareness of construction careers such as a national recruitment campaign. Until we get more people entering the sector, long waits for projects and delays are sadly inevitable.”

Outlook for 2026

Despite current challenges, the outlook among builders remains cautiously positive. Around 48% of firms reported a positive outlook for the first half of 2026, with increases recorded across workload, employment and enquiries in late 2025.

However, concerns remain around policy changes, with 47% of builders expecting negative impacts from adjustments to National Insurance contributions.

The findings underline ongoing structural challenges in the construction sector, with skills shortages and rising costs continuing to affect both project delivery and affordability for homeowners.