British Construction in the Face of Brexit

A shortage of architects

UK architecture works with the world – and it also employs architects from across the world. In particular, it is highly reliant on a regular pipeline of architects from the EU, which has already begun to dry up.

“Currently 25% of UK-registered architects are international, with the vast majority from the EU. However, since the referendum there has been a drop-off in registrations from EU architects, and we are concerned about the impact of this on recruitment,” explained Vallance.

“Ensuring the UK can access international architectural skills and talent is a key focus for the RIBA, as is the need for a flexible, responsive immigration system.”

“Ensuring the UK can access international architectural skills and talent is a key focus for the RIBA, as is the need for a flexible, responsive immigration system.”

This is an issue that the RIBA has been raising with the UK government for some time, and at the end of July saw some results. The Home Office has agreed to include architects on the Shortage Occupation List (SOL) from autumn, at the formal recommendation of the Migration Advisory Committee.

This will see qualified architects given favourable treatment in the immigration process in order to make it easier for British firms to recruit overseas. However, the RIBA still sees some issues that could limit the industry’s ability to recruit at affordable levels.

“This is a positive development for architects trying to navigate the UK’s tricky immigration process,” said Vallance.

“We will, however, continue to urge the government to drop their £30,000 suggested salary threshold, to ensure we attract a broad range of international, young talent, especially outside of London.”

Construction downturn fears

When it comes to building firms, expectations of future work are not high.

According to a survey by the Federation of Master Builders (FMB), just 37% of small and medium building firms anticipate higher workloads between now and the Brexit deadline, compared to 41% at the start of the year.

Furthermore, the FMB is reporting that this concern over future job prospects is causing construction chiefs to reorganise their workforces, reducing the number of full-time staff to better weather the oncoming storm.

“Years of Brexit uncertainty have resulted in construction bosses starting to change how they employ their workforce. To ensure their firms are ready for any economic shockwaves later this year, employers are reducing their number of direct employees and relying more on sub-contractors who are easier to shed if work dries up,” said Brian Berry, chief executive of the FMB.

“The construction industry has always used a significant proportion of subbies but the fact that direct employment is decreasing, points to Brexit nerves among construction bosses.

“This is the reality on the ground of what happens when years of uncertainty are inflicted on the construction industry.”

“This is the reality on the ground of what happens when years of uncertainty are inflicted on the construction industry.”

There has also been a hit to the numbers of trained professionals in the construction industry, both in terms of those originating from the EU and from the UK itself. And the latter is being worsened by the ongoing uncertainty and resulting conservative approach.

“Apprenticeship training has taken a hit as construction bosses are reluctant to take on young people when they can’t be sure of future projects going ahead.”

Dropping build quality

Fear over future work is not the only issue when it comes to the UK building industry and Brexit. There are also concerns over a drop in the quality of construction – which can have significant and at worst fatal knock-on impacts to the UK workforce.

For the FMB, this is a direct result of the reduction in the number of direct employees within the building sector.

“The fear is that using more subbies can lead to a drop in the quality of our builds,” explained Berry.

“Direct employees, who are well-known to their firm, are much more likely to follow the ethos of their company and build to the right standard. If construction bosses are trying to protect their businesses by employing more subbies, they might not always know how good these subbies are.

“Rebalancing the workforce may seem like a good idea at the time, but it could lead to reputation-damaging mistakes. If a downturn is on the horizon, reputation is everything and construction employers can scrutinise the quality of their workforce far more easily when they’re on the books.”

“The fear is that using more subbies can lead to a drop in the quality of our builds.”

While it could be argued that fears over construction quality may ultimately prove unfounded, the RIBA has already raised concerns about build quality on some projects, suggesting the issue may already be becoming a reality.

“We are seriously concerned about the quality of some of the housing being built across the country, and urge the new government to review current Permitted Development Rights as a matter of urgency,” said Ben Derbyshire, president of the RIBA.

Rising material prices

While, with the exception of some modular construction, the UK builds occur within the nation’s borders, international concerns can have a dramatic impact. This is because many of the building materials used originate from beyond the UK, with many coming from the EU.

If the UK does embark on a no-deal Brexit there are fears that the price of many construction materials would rise, with 53% of construction heads expecting rising material prices in a no-deal scenario, according to the FMB.

“Construction SMEs are worried about the potential impact of a no deal Brexit, which would have immediate and potentially disastrous consequences for the construction industry,” said Berry.

“Material prices are the biggest cause for concern – widely-used building materials such as timber are largely imported and any disruption to that would lead to soaring prices and delays to construction projects.”

Making Brexit work for British construction

As a country faced with both a housing crisis and the international climate emergency, both of which the construction sector is vital to mitigating, the UK government needs to ensure the industry’s concerns are quickly and effectively managed during the Brexit process.

For architecture, this involves further pressure from the RIBA, as well as preparation by individual architects.

“The RIBA will continue to call on the government to do everything they can to prevent further damage from uncertainty and the threat of a no-deal situation. In the meantime, we urge architects and practices to read our no-deal guidance and prepare for every eventuality,” said Vallance.

“With less than 100 days to go until the UK leaves the EU, Brexit is a key priority,” added Derbyshire.

“No deal would be disastrous for UK construction and our-world leading architecture sector because our success relies on being open to the world. We will be engaging with the new government to stress our profession’s concerns.”

“No deal would be disastrous for UK construction and our-world leading architecture sector because our success relies on being open to the world.”

For construction, however, the call is for legislative changes to better support the industry.

“[The Prime Minister] has it in his gift to guard against any potential economic downturn by stimulating activity in construction and house building,” said Berry.

“Construction SMEs believe that the best way to do this would be to slash VAT on housing, renovation and repair work from 20% to 5%, which would help tempt homeowners to finally commission the home improvement projects they’ve been putting off due to Brexit-related uncertainty. This would give a much-needed boost to the construction sector and the wider economy.

“The PM should also make more money available to SME house builders through government funding schemes and stimulate apprenticeship training through fundamental reforms to the Apprenticeship Levy.

“The new PM has a responsibility to steady the economy. There’s no better way to do that than investing in construction and house building, which would boost the economy.”