Industry Intel

How building development, regeneration and town planning industries will be affected by Brexit?

Robert Murray


Jul 21, 2022

With so much uncertainty, it’s hard to fully anticipate the effect that Brexit will have on the housing industry. A recent report by PwC suggested that UK GDP could be 1.2%-3.5% lower in 2030 after leaving the EU due to uncertainty around trading and business operations in the UK;

Already we have seen business investment drop by 26%. Without a doubt, this will impact public and private spending and we expect local governments and private developers to feel this the most.

How will Brexit affect Housing and Property Recruitment?

According to the CIPD’s Labour Market Outlook (LMO) report, the share of organisations reporting hard-to-fill vacancies increased from 56% in the Spring 2017 report to more than three in five (61%) in the Spring 2019 report.

Despite this, as a recruitment agency, we expect to see the number of available roles reduce as businesses are cautious to make any big decisions or long-term hiring plans.

However, there could be an increase in the number of contract roles available as these provide businesses with the flexibility to hire skilled staff to work on projects as and when this is needed. However, contrary to this, contractors are looking for the security of a permanent role during this time of uncertainty.

As time goes on, and the dust starts to settle, there is evidence to suggest that as we lose immigrant workers, there will be new job opportunities opening up for workers here in the UK. It’s extremely early days, but we predict that those who are eligible to remain will reap the rewards.

If you are an employer, working with a recruiter is the most effective way of ensuring your roles are filled with experienced candidates that match your criteria. We have great relationships with candidates across the board, giving you access to a talent pool that you might not have otherwise been able to tap into. With a recruiter by your side, you can trust that your role will be filled with the right kind of person, giving you a dependable employee in these uncertain times.

Brexit’s impact on local Housing Services and Town Planning

From what we know, funding to local councils will be affected by Brexit putting a strain on already, arguably, underfunded local services. However, plans are in place to replace these funds through the United Kingdom Shared Prosperity Fund. The extent of this impact is yet to be seen but a shake-up in Housing Needs and Housing Management, as well as Town Planning is imminent and will be felt across the nation.

We expect to see a reduction of planning applications in the coming months but at the moment, we haven’t seen this happen as businesses have reported having faith in the government at this time. Nonetheless, businesses are anticipating increased costs for labour and of materials.

With the building industry encompassing a diverse multicultural range of personnel, Brexit in itself could have an impact on the workers, in turn affecting the industry as a whole. Moreover, with materials often imported from Europe, the cost of the service could rise in line with the cost of building.

As a result, larger schemes have been halted while we wait for clarity on any legislation changes. It is likely the government will make some planning legislation changes, in line with the budget and Brexit, wanting to reform planning.

Brexit’s impact on investment in Development and Regeneration

At this current time, clients are putting contingencies in place for a ‘no deal’ Brexit and there’s been a significant slow down in the number of new projects, and subsequently, new hires in this sector while we wait for the dust to settle.

However, despite a lot of doom and gloom around investment and availability of skilled workers, over time RICS have identified growth in Development, Regeneration, and Town Planning, although this may come at an increased cost.

In addition, ahead of the decision on Brexit, the Royal Town Planning Institute issued two reports on the impact of Brexit on EU legislation affecting land use. Although the outcome of the recommendations in these reports have yet to be established, we expect to see a shake-up in the industry as a system has yet to be defined post-Brexit.

Overall, it’s too early to see the effect that Brexit will have on this industry, though, we hope that with increased control of regulations being brought back to the UK and away from the EU, we’ll start to see an increase in investment and Development across the sector.

Brexit’s impact on Environmental Planning

We’ve covered Brexit’s impact on parts of public environmental health before but a large question mark looms over the industry as a whole as we look to governing bodies to set the standard for the UK post-Brexit. While some reports focus on the cost of adhering to environmental regulations, others see new opportunities for the UK to define itself, implementing new laws that focus on boosting our own production and wellbeing.

It’s very early days for organisations to measure the effect of Brexit on Environmental Planning. Their 2018 report suggested some of the ways that the UK could continue to implement EU environmental legislation and planning but whether this will be inherited remains to be seen.

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Robert Murray

Like most Drama School Graduates, Rob was working in a restaurant when he was approached by Oyster to come in and interview for a job. And thank goodness he decided to swap his dreams of the stage for Recruitment because just 7.5 years later, Rob has skyrocketed from Recruitment Consultant to Director. Can’t do that dancing in a production of Cats. One of Oyster’s most elusive men, you will never find Rob at his desk. Instead, he’ll be everywhere at once, doing the work of five people, with the energy levels of ten.

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