Just how much impact has Brexit had on UK construction?

It’s been nearly a decade since the British public made the decision to leave the European Union and we continue to feel the impact of that every day.  

In terms of industry though, the UK construction industry has certainly had some notable changes since the referendum, which have brought their own challenges.  

In this article, we will take a look at how things have changed since the vote in 2016 and how those changes impact the UK construction sector.  

Construction costs have shot up 

Things have gotten a lot more expensive for people in UK construction since the decision to leave the EU and at an alarming rate, too.  

As reported by The Guardian, data analysis from both the UK Department for Business, Energy and Industrial Strategy and Eurostat, the central EU database, showed that the cost of materials, including steel, cement and timber, rocketed up by 60% between 2015 and 2022.  

Rising costs affected everybody in Europe, be it from the Covid-19 pandemic or general supply chain problems, but the UK was stung the most. For context, in the same period, the average rise for EU countries was 35% 

The reason for the 25% increase compared to the average rise across EU countries comes down to things like added costs, admin or bureaucracy and it is smaller firms who will feel the pinch a lot more.  

Across the same time period and according to the same data analysis, the cost of labour also soared – in the UK, it rose by 30%. 

This is also significantly more than other EU countries. For comparison, Denmark and the Netherlands saw their cost of labour rise by 14%.  

There’s been a notable shortfall in the UK labour force 

It has been estimated by a thinktank that 330,000 people have left the UK labour force since Brexit, which includes the construction industry.  

As a result, the situation has gotten pretty dire – so much so, that in July 2023, the UK government relaxed visa rules for foreign builders to try and combat this.  

Jobs such as bricklaying, carpentry, roofing and plastering, amongst other construction jobs, were all added to the ‘shortage occupation list’, which offers a huge incentive to those from abroad.  

If you have a job role on the shortage occupation list, you are eligible for 80% pay in addition to a skilled worker visa and a lower application fee, assuming you have a sponsored job offer and can speak English.  

As per UK law, employers are allowed to offer 80% to EU migrants instead of the full 100% they’d have to pay domestic citizens, if they are filling a job listed on the shortage occupation list.  

Construction worker shortages have always been problematic, but not quite on the post-Brexit level. Since Brexit, EU workers need a visa to work in the UK, which became a major issue after Covid-19, when a lot of EU construction workers returned home. 

The change will no doubt help with the dwindling figures, which is great for the construction industry.  

Making the most out of challenging circumstances 

The construction industry, perhaps more so than any other industry in the UK, has always found a way to be resilient in the face of adversity. It is determined, dogged and strong.  

In a post-Brexit world, that is no different. The challenges are very much real and have a big impact, but those in UK construction still find a way to deal with it as best they can and bounce back.  

If you would like to read more articles on construction, you can find several – in addition to videos – on our Expert Hub. You can find that here.