The UK construction industry faces a number of significant challenges. From delivering ambitious housing targets and addressing workforce shortages to improving consumer confidence and raising professional standards, the sector is under increasing pressure to evolve. In the latest episode of the Brookbanks Podcast, Ben Wakeling is joined by Brian Berry, Chief Executive of the Federation of Master Builders (FMB), to explore the role licensing could play in strengthening the industry and supporting the next generation of housing delivery.
Established in 1941, the Federation of Master Builders was formed to provide smaller construction companies with a collective voice during a period of significant rebuilding following wartime damage. More than eight decades later, the organisation continues to represent SME Builders across the UK, advocating on issues ranging from skills and regulation to housing delivery and business growth.
While challenges facing the industry have changed considerably since the FMB’s formation, the need for strong representation remains. Rising costs, increasing regulatory requirements, skills shortages and ambitious housing targets are all placing growing demands on contractors operating throughout the sector.
One of the key themes explored in the discussion was the long-term decline of small and medium-sized housebuilders.
During the late 1980’s SME developers were responsible for approximately 40% of new homes built in the UK. Today, that figure has fallen to around 9%. As the Government pursues its target of delivering 1.5 million new homes, increasing SME participation will be critical to expanding housing supply.
While large national developers will continue to play a central role in meeting future housing demand, creating opportunities for smaller builders and developers to re-enter the market at scale could help unlock additional capacity, stimulate local economies and increase competition across the sector.
A central focus of the conversation was the FMB’s License to Build campaign, launched in 2018 to advocate for a mandatory licensing system for building companies.
Unlike many regulated professions, individuals can currently establish a construction business without demonstrating a recognised level of competency, experience or qualification. The FMB believes this creates uncertainty for consumers and allows poor-quality operators to compete alongside reputable contractors.
A licensing framework would provide a clear benchmark for competence, helping homeowners and clients make informed decisions when appointing contractors while driving greater accountability across the industry.
The FMB argues that improving transparency and trust within the sector would benefit both consumers and construction businesses, helping to raise standards and enhance the industry’s reputation.
A common concern surrounding licensing is the potential for additional administrative and financial burdens, particularly for smaller businesses already navigating increasing regulatory requirements.
However, proponents of licensing suggest that clearer professional standards could have the opposite effect. Greater consumer confidence has the potential to increase demand for construction services, while recognised accreditation may help contractors access larger projects, framework agreements and public-sector opportunities.
By establishing a consistent standard across the industry, licensing could create a more level playing field for businesses that already invest in skills, training and quality assurance.
The conversation also examined the changing regulatory landscape following the Grenfell Tower tragedy.
The introduction of the Building Safety Act has accelerated discussions around competency, accountability and professional responsibility throughout the built environment sector. Increasingly, policymakers and industry bodies are focusing on how competency can be demonstrated and maintained across all areas of construction.
Within this context, licensing forms part of a wider industry shift towards improved standards, clearer accountability and greater assurance for clients, residents and building owners.
With pressure growing to increase housing delivery, the podcast explored how the industry can balance speed with quality.
Meeting housing targets requires more than simply increasing output. It also depends on maintaining the skills, knowledge and professional standards necessary to deliver safe, sustainable and high-quality developments.
As the sector continues to scale up delivery, ensuring competency remains at the forefront of the conversation will be essential to maintaining public confidence and avoiding future quality concerns.
Addressing the construction skills shortage remains a priority across the industry.
Expanding apprenticeship opportunities, increasing investment in vocational education and promoting the broad range of careers available within construction will all play an important role in attracting new talent. From project management and surveying to design, engineering and site-based trades, the industry offers a diverse range of professional pathways.
The discussion also highlighted the importance of improving diversity across the sector. Attracting a broader range of talent will be critical to meeting future workforce demands and ensuring the industry has the capacity required to support long-term growth.
Throughout the conversation, one message remained consistent: improving standards, strengthening competency and increasing trust must sit alongside efforts to accelerate housing delivery.
For the Federation of Master Builders, licensing represents an opportunity to support these objectives simultaneously, helping to raise professional standards, improve consumer confidence and create the conditions needed for sustainable growth.
As the construction industry continues to navigate increasing demand, evolving regulation and a growing skills challenge, developing a workforce and supply chain built on competence, accountability and professionalism will be essential to delivering better outcomes for both the industry and its clients.
To find out more about the Federation of Master Builders and the Licence to Build campaign, visit the FMB website. To learn more about Brookbanks and our multidisciplinary development consultancy services, view our latest news articles.
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