The West Midlands stands at a crucial juncture in its development trajectory. As the region grapples with persistent housing challenges, particularly in the social housing sector, there is a growing recognition that addressing these issues requires more than just bricks and mortar.
In this article, Joanna Lee-Mills (Partner and Head of Social Housing Development, Shakespeare Martineau and Member of CNM’s Housing and Communities Leadership Board) raises the notion that a holistic approach that marries housing strategy with investment in skills and education is emerging as a powerful solution to not only tackle the housing crisis, but also to drive economic growth, foster community development, and meet ambitious environmental targets.
(September 2024)
The Housing Landscape
The West Midlands continues to face significant housing pressures. According to the latest data from the West Midlands Combined Authority (WMCA), the region needs to build approximately 230,000 new homes by 2031 to meet demand, with a substantial portion required in the social and affordable housing sectors. The average house price in Birmingham, the region’s largest city, has risen by 15% since 2021, outpacing wage growth and exacerbating affordability issues.
Furthermore, the social housing waiting list across the West Midlands has grown to over 120,000 households, highlighting the urgent need for increased investment in this sector. About 25% of the existing housing stock in the region falls below modern energy efficiency standards, contributing to fuel poverty and hindering progress towards net-zero carbon emissions goals.
The region therefore faces a pivotal moment in its development, with pressing challenges in both housing and skills. By uniting these two crucial areas, there is a unique opportunity to create a virtuous cycle of growth, sustainability, and social progress. Both the WMCA and Birmingham City Council have taken steps to recognise the housing-skills nexus, and that addressing the housing crisis requires more than just building homes; it necessitates a wider strategic approach that considers the skills needed to construct, maintain, and upgrade housing stock for the future.
The Skills and Education Imperative
While the housing challenges are clear, the West Midlands is also confronting a skills gap in the construction and green technology sectors. The regional construction industry lacks workers skilled in modern, sustainable building techniques and green skills, such as retrofitting and future proofing, with the added issue that a large proportion of existing housing stock requires retrofitting to meet environmental standards.
The Construction Industry Training Board (CITB) estimates that the region will need to recruit and train an additional 30,000 construction workers by 2027 to meet demand, with a particular emphasis on skills related to sustainable building practices and retrofitting.
This skills shortage presents both a challenge and an opportunity. By aligning housing strategy with targeted investment in skills and education, the region can address multiple issues simultaneously; enhanced skills in modern construction techniques and green technologies can ensure new and renovated homes meet high standards of energy efficiency and sustainability and by creating targeted initiatives and programmes, local residents can be trained with valuable skills to create pathways to employment and foster a sense of ownership in community development projects.
Ultimately, a well-trained workforce in the construction and green technology sectors can aid regional economic growth by attracting investment, and given the volume of new homes required (particularly in the social housing sector), a skilled workforce is essential to help meet growing housing demand.
Initiatives Bridging Housing and Skills
The correlation between housing and skills is not completely new to the West Midlands. Several initiatives by the WMCA and Birmingham City Council have already begun to bridge the gap between the two, such as the Combined Authority’s Construction Gateway Programme, an initiative that provides free construction training and a guaranteed job interview upon completion. This is a prime example of how skills programmes can be directly linked to housing development needs.
The Birmingham Municipal Housing Trust represents Birmingham City Council’s house-building arm and not only provides new social housing, but has also helped create apprenticeship opportunities in construction and thereby linking housing provision directly to skills development.
The WMCA has, and continues to invest in training programmes to upskill workers in green retrofitting techniques, preparing our regional workforce for large-scale housing energy efficiency upgrades (for example, via the Green Homes Grant Skills Training programme) and is committed to promoting modern methods of construction, including offsite manufacturing.
Integrating Housing, Skills, and Education: Key Strategies
Given the multiple benefits of investing in the housing-skills nexus, it is clear the region needs to extrapolate and pursue some key strategies to achieve this integration, such as the creation of:
| Green Construction Academies | These would be specialised training centres focused on sustainable building techniques, renewable energy systems, and green retrofitting. These academies could partner with local colleges, universities, and industry leaders to provide both theoretical knowledge and practical experience. |
| Social Housing Learning Hubs | The incorporation of skills training facilities and community education centres within new social housing developments would demonstrate the region’s commitment to upskilling specific cohorts and communities. These hubs could offer courses in construction skills, home maintenance, energy efficiency, and financial literacy. |
| Apprenticeship Programmes | There is a clear need for the expansion of apprenticeship schemes in the construction sector, with a particular focus on green skills. These programmes should be designed in close collaboration with housing associations, local authorities, and private developers to ensure they meet industry needs. |
| Retrofit Training Initiatives | As part of our regional future-proofing agenda, targeted training programmes for retrofitting existing housing stock could be created, addressing both the skills gap and the need to improve energy efficiency in older properties. |
| Digital Skills Integration | Future-proofing extends beyond bricks and mortar, the workforce itself should be future-proofed by incorporating training in digital construction technologies, such as Building Information Modelling (BIM), across all levels of the housing sector workforce. |
| Research and Innovation Partnerships | The region needs a clear mandate to drive innovation in sustainable housing solutions and provide opportunities for advanced skills development. This can be done via more collaborations between universities, housing providers, and technology companies. |
Challenges
Implementing an integrated approach faces several challenges. First and foremost will be the issue of funding. Securing investment for both housing development and skills programmes requires amongst other things, innovative financing solutions and strong public-private partnerships. The region will need to align funding streams for housing development and skills training, potentially through a dedicated regional fund.
Another significant challenge will be for the region to balance immediate needs against its long term goals; strategies must address urgent housing shortages whilst at the same time, invest in long-term skills development. Ensuring inclusivity will also be paramount; skills programmes need to be accessible to all segments of the community, including those from disadvantaged backgrounds and community engagement will play an important role in ensuring local communities are involved in shaping housing and skills initiatives to meet their specific needs.
Also, greater cross-sector collaboration between housing associations, educational institutions, local authorities, and private sector partners will be complex, but essential in shaping the integration between housing and skills. The region can indeed set itself apart, but will need to ensure an alignment with national government policy, to ensure our Midlands based frameworks support an integrated approach to housing and skills development.
The Road Ahead
The region has indeed the potential to become a national leader in integrating housing and skills strategies. By building on existing initiatives and expanding into new areas of green skills and technology, the Midlands can create a model for sustainable urban development.
Key steps for the future could include:
| Regional Social Housing Strategy
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Developing a comprehensive regional strategy that explicitly links housing targets with skills development goals. |
| Skills Forum
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Creating a West Midlands Housing and Skills Forum, bringing together key stakeholders to coordinate efforts and share best practices. |
| Public Campaign | Launching a public awareness campaign to promote careers in sustainable construction and highlight the link between housing quality and skills. |
| Educational Partnerships
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Establishing partnerships with universities and colleges to ensure curricula align with the evolving needs of the housing sector. |
| Pilot Projects | Piloting innovative housing projects that serve as both homes and training grounds for new construction techniques. |
Conclusion
The West Midlands currently stands at a crossroads, facing significant challenges in both housing and employment. By recognising the intrinsic link between these areas and taking bold steps to unite housing strategy with skills development, this holistic strategy can address the pressing need for social and affordable housing while simultaneously building a skilled workforce capable of driving the region’s economic growth, and meeting its sustainability goals.
This united approach can not only provide much-needed homes and jobs, but also position the Midlands as a pioneer in sustainable urban development. Partnerships between the housing sector, educational institutions and industry, and a renewed focus on green skills and ESG considerations, can help position the region as a leader in sustainable urban development.
As the region moves forward, the success of a unified strategy could serve as a blueprint for other areas facing similar challenges, demonstrating how housing can be a catalyst for broader social and economic transformation. The challenges are significant, but the potential rewards – in terms of improved housing, economic resilience, and environmental progress – make this an endeavour worth pursuing with urgency and vision.
ABOUT OUR AUTHOR:
Joanna heads up the Social Housing Development team at Shakespeare Martineau and specialises in affordable housing development, acquisitions and disposals. Having worked for registered providers since 2001, Joanna has frequently acted as project lead with large multi-disciplinary teams for the development of social housing, stock transfers or swaps. Her expertise encompasses s106 or land led acquisitions, and development agreements for golden brick or turnkey schemes.
Previous projects have seen Joanna as project lead on the country’s then largest tenanted stock rationalisation transaction involving a complex funding model, and also the country’s first stock swap.
Joanna’s role is instrumental in the strategic growth and direction of the social housing development team and its interface with other sector teams from around the firm. Notably, she is keen to promote collaboration and working closely with colleagues across the firm’s planning, construction and residential development departments in order to provide clients with a seamless and rounded affordable housing service offering. Joanna is heavily invested in her client relationship and profile raising role, often procuring pipeline not only for her team but other departments in the wider sector team also.
With a keen interest in knowledge sharing on sector specific challenges, Joanna has written articles on issues such as stock rationalisation, the impact of the Green agenda on the built environment and the importance of joint ventures and public private partnerships towards the housing crisis, having been published in Inside Housing, Social Housing and other specialist property publications. She is an active participant in the housing sector and local business community, being on the Board of Directors at Auxesia Homes, TAG Network Midlands Limited and Colmore BID.