Marvin OnumonuA report from the Home Builders Federation (HBF) and Pluto Finance, launched at the HBF policy conference, found only 6% of construction firms expect artificial intelligence (AI) to reduce headcount, compared to 11% in other sectors.
The report highlighted that technology will support skilled workers rather than replace them.
It comes as the UK faces labour market challenges, with 16% of young people aged 16 to 24 out of work, compared to a 5% national average.
AI is expected to improve construction processes, design, planning and productivity, but cannot do key tasks like bricklaying, installing roof trusses or plastering walls.
Nine in 10 new starters said job security was an important reason for joining the industry, while 70% said they chose it to avoid the impact of rising automation.
More than 80% of new entrants said AI will change how people work in home building over the next decade, but 67% agreed jobs in home building are less likely to be replaced by AI than in other sectors.
The report stated that the sector can offer long-term job opportunities at a time of concern about automation, and people will remain central to delivering housing even as the industry modernises.
The HBF called for policy changes to support workforce expansion, including more apprenticeships, better careers advice, support for work experience and development programmes, improved funding for trade training, and more diversity in the workforce.
Neil Jefferson, chief executive at the HBF, said: “At a time when too many young people are struggling to find work, home building offers a real opportunity to access secure, skilled and rewarding careers in an industry that is evolving technologically but remains human at its core.
“If Government is committed to meeting its housing targets, we need to match the evident ambition when it comes to planning with action across the other policy areas that impact housing supply.
“We need to see a clear focus on workforce expansion by backing apprenticeships, supporting further education, improving careers advice and helping more people from all backgrounds to enter and progress in the industry.”
Jefferson added: “The industry has weathered political, policy and geopolitical storms in recent years and maintained high levels of employment.
“We now stand ready to make the leap necessary to bring the Prime Minister’s 1.5 million homes ambition a more realistic proposition.
“With the right support, our sector can deliver the homes the country needs while creating hundreds of thousands of long-term jobs.”
Justin Faiz, CEO and co-founder at Pluto Finance, said: “As one of the UK’s leading providers of development finance for home builders, we are only too aware of the impact that the construction industry skills shortage has on housing delivery.
“What is clear, however, is that this is a moment of real opportunity for the sector.
“As AI is adopted across home building, it is already improving planning, development viability and project forecasting, bringing greater certainty to schemes and supporting faster capital deployment.”
Faiz added: “Crucially, these advances are complementary to the workforce, increasing productivity while reinforcing the need for skilled people on site.
“With the right focus from industry and policymakers, there is a strong chance to put the skills shortage behind us and reposition construction as a sector of first resort, not last resort, offering secure, high-quality careers at scale while supporting the delivery of the homes the country needs.”
