Multiple barriers in the residential construction sector not only constrain the delivery of new homes, but also impede innovation, investment into skills, new technologies and equipment – and create conditions for consistently low levels of productivity. Short-term funding pledges and policy instability drive uncertainty; firms are unwilling to invest without the reassurance of a long-term pipeline of work.  

The National Housing Federation (NHF) therefore sought a better understanding of the potential impacts of long-term funding being assured for the residential construction sector.  

Working with Cast Consultancy, we undertook a Rapid Evidence Assessment (REA), drawing upon existing secondary sources of evidence, academic papers, industry journals and published datasets from major Government departments and the Office of National Statistics (ONS).  

Desk-based research was supplemented with depth interviews with selected construction sector stakeholders.  

Our research set out existing barriers to productivity growth and innovation in the construction sector, the role of funding as both barrier and enabler and likely impacts and benefits that could be expected to result from guaranteed funding over a longer-term period.