HOMEOWNERS planning renovations, extensions or repairs should brace for delays and increased costs, according to new 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, 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.
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.
FMB CEO Brian Berry said, “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. 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.”
CIOB CEO 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.”
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.
