Britain’s construction workforce could “drastically” shrink if it leaves the European Union, compromising plans to build hundreds of thousands of new homes needed to ease the country’s supply shortage.
That’s according to a new report from the National Association of Estate Agents, which cautioned that imposing greater restrictions on foreign workers coming into the U.K. in the event that the public votes in favor of a Brexit in June’s referendum may hamper its ability to build homes.
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Construction-based jobs are decreasing in popularity among U.K. nationals, and since one in 20 current construction workers were born in other EU countries, they are becoming more important than ever in filling the skills gap to boost housing stock.
Mark Hayward, managing director of the NAEA, said: “An ‘out’ vote could mean that in ten years’ time we’d find ourselves with a severe skills shortage of construction workers. So even if we then had planning permission, investment and materials to build more housing, we simply wouldn’t have the resources to put the bricks and mortar together.”
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A chronic lack of new homes coming onto the market in the U.K. combined with growing demand has pushed up prices to record levels, blocking many would-be buyers from taking their first steps onto the property ladder.
In order to tackle this issue, the U.K. government has pledged to build one million new homes by 2020, although several experts have warned that this is too ambitious.
However, a Brexit would not be all bad news for first-time buyers, according to the report. If, following a Brexit vote, the U.K. does not maintain free movement of labor, the total population of the U.K. could decrease by over one million. With fewer people, demand will ease, making the market more accessible for first-time buyers.
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