Spring Budget brings major boost for homebuilders, homeowners and housing market

In today’s Spring Budget Statement, Chancellor Rachel Reeves announced measures aimed at reviving the UK housing sector.

With a shortage of skilled tradespeople holding up the building of houses, the government is injecting significant funding into training the next generation of builders.

Alongside this, energy efficiency initiatives are being introduced, with the government claiming these measures will help build a more sustainable future for both homebuilders and homeowners across the UK.

Homebuilding sector gets a boost

One of the key announcements from the Spring Budget centres around the UK’s pressing housing shortage, which has faced significant setbacks due to trade shortages and rising construction costs.

As part of the government’s ongoing efforts to increase the supply of new homes, the Chancellor revealed a £600 million investment into construction training. This initiative is expected to create 60,000 new apprenticeships across vital trades like bricklaying, carpentry and electrical work by 2029.

Industry experts, such as Andy Simms from MyBuilder.com, have long warned that the UK risks missing its housebuilding targets due to a shortage of skilled workers.

The Construction Industry Training Board (CITB) projects a shortfall of over a quarter of a million construction workers by 2028, driven by retirements and the lack of young people entering the trades. By increasing funding for apprenticeship programs, the government aims to address these issues, ensuring a more sustainable pipeline of skilled workers for the construction industry.

Andy Simms commented: “It’s encouraging to see the government taking the labour shortage seriously and investing in the future. The new announcement is a promising step in the right direction, but more needs to be done to encourage young people into the trades to meet the UK's housing goals."

Andy Rayner, Director of Learning and Development at Travis Perkins, also welcomed the funding boost. “This funding will help close critical gaps in the workforce and enable the industry to meet ambitious building targets with greater confidence,” he said. “The construction industry has been facing significant challenges due to ongoing skills shortages, which have impacted the speed and scale at which projects can be delivered. This investment is not just a step in the right direction but also a long-term commitment to the future of the industry.”

Andrew Simms

Andrew Simms is a Construction Consultant at MyBuilder.com with nearly 10 years of experience in the industry. He specialises in product development and bridging the gap between tradespeople and product managers, with expertise in multi-trading, team management and project management.

Andy Rayner

Andrew Simms has over 25 years of experience in the construction and retail sectors. He is currently the Director of Apprenticeships at Travis Perkins plc, where he has worked since 2017.

Energy bill relief plans announced

Alongside boosting the construction workforce, the Spring Budget also focused on providing relief for homeowners facing escalating energy bills.

With energy costs continuing to rise, especially during the winter months, the government has committed to a package of measures aimed at making homes more energy-efficient.

Reeves’ announcement includes funding to support homeowners in making energy-saving upgrades, which will reduce their reliance on costly energy sources. Homeowners will be able to access grants, such as ECO4, and incentives for retrofitting their homes with better insulation, more efficient heating systems, and other energy-saving technologies, such as the Boiler Upgrade Scheme. These measures are part of the government’s broader plan to tackle the cost-of-living crisis while promoting sustainability.

John Healey, Labour’s Shadow Secretary for Housing, said: “Homeowners have been under significant financial strain due to rising energy prices. These steps to support energy efficiency are welcome, but we need to see more concrete action to ensure that all homes, particularly those in the private rented sector, are upgraded to meet modern energy standards."

While no specific figures were disclosed regarding the scale of these subsidies, the move is a step towards easing the financial strain felt by many households, particularly those in older homes with poor energy efficiency ratings.

Creating a sustainable future for housing

The Chancellor’s Spring Budget outlines a commitment to revitalising the UK’s housing market through comprehensive support for both homebuilders and homeowners.

By addressing the skills gap in construction and providing targeted support for energy efficiency, the government hopes to create a more resilient housing sector.

For homebuilders, the new investments promise a more robust workforce and the potential to meet housing demand more effectively. For homeowners, energy-efficient upgrades could mean reduced living costs and long-term sustainability.

As the UK continues to face economic pressures, the government’s efforts to support the housing sector and its workers could provide much-needed relief and pave the way for a stronger, more sustainable housing market in the years to come.

Commenting on the government's overall approach, the Berkeley Group, a national UK housebuilder, have expressed concerns about the impact of regulatory changes, particularly the building safety levy, on delivering new homes, but it has been announced this will be delayed until 2026. However, the company also stated they are "hugely encouraged" by the government's other planning reforms, and the latest extension of the Affordable Homes Programme.

Stay tuned as the full details of these initiatives are rolled out in the coming months.