Homeowners feel the pinch as one in five builders cancel jobs entirely over lack of skilled workers.
Homeowners planning renovations, extensions or repairs should brace for delays and increased costs, according to new industry data from the Federation of Master Builders (FMB) and Chartered Institute of Building (CIOB).
The FMB and CIOB’s State of Trade Survey for the second half of 2025 reveals that 72% of small and medium-sized building firms are struggling with a severe shortage of skilled tradespeople. This is up from 61% in the first half of the year.
The research shows the reality of the skills crisis, resulting in widespread disruption to building projects, with nearly half (49%) of builders reporting job delays as a direct result.
For homeowners, this translates into longer waiting times for everything from kitchen renovations to home extensions, with projects increasingly pushed back or halted altogether. One in five builders (22%) have been forced to cancel jobs entirely due to the lack of available skilled workers.
The survey, available to view here, received 493 responses from small and medium-sized building firms across the UK between 26 January and 20 February 2026.
Carpenters (30%), bricklayers (29%) and plumbers/HVAC trades (23%) are the most difficult skilled trades to recruit.
The most common types of building work undertaken were renovation (70%), home improvement (70%), and major works (65%).
Cost of building work continues to rise
The skills shortage comes alongside persistent cost pressures. Three-quarters (75%) of builders reported increased material costs in the second half of 2025, with the majority (61%) passing these costs onto customers through higher prices.
“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,” said FMB chief executive Brian Berry.
“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.”
Frustrating waiting times
CIOB chief executive 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.”
What this means for homeowners
With demand for renovation and home improvement work remaining strong – 70% of builders report undertaking both types of work – consumers face a competitive market where:
- booking a reputable builder may take longer than in previous years;
- project timelines should build in contingency for potential delays;
- budgets need to account for higher material and labour costs;
- some builders may be unable to take on new work due to existing backlogs.
The FMB and CIOB recommend that homeowners:
- Start planning projects well in advance and expect longer lead times;
- Obtain multiple quotes from FMB-inspected builders or the CIOB members directory to ensure quality and reliability;
- Build flexibility into budgets and timelines;
- Check that builders have contingency plans for potential material delays or skilled labour shortages;
- Maintain open communication with builders about potential challenges.
Looking ahead
Despite the challenges, there are positive signs for the industry.
Almost half (48%) of builders report a positive outlook for the first half of 2026, and all key performance indicators – workload, employment, and enquiries – recorded net increases in the second half of 2025.
However, builders are concerned about the impact of recent policy changes, with 47% expecting negative impacts from changes to National Insurance contributions.
