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Housing crisis: Post-Brexit construction skills shortage 'a critical issue'

A Government drive to cut immigration with Britain's departure from the European Union may exacerbate the housing crisis if strict post-Brexit immigration controls result in fewer construction workers coming to the UK, an industry body has warned.

The British Property Federation (BPF), which represents developers, investors and others in the sector, said access to talent following the divorce is the most pressing concern for property firms.

Britain's Brexit deal following its departure from the bloc is expected to include restrictions on free movement rules, although the precise arrangements are yet to be decided.

Ministers have publicly referred to attracting "the brightest and the best" of highly skilled workers in future.

But privately, some have argued that tens of thousands of low-skilled jobs currently filled by migrants cannot easily be replaced with British labour, if they face shortages.

BPF chief executive Melanie Leech said: "Talent is a critical issue to sort and, in our sector, it's construction skills.

"There are a huge number of workers coming from within and outside the EU currently and, if we're going to have a really ambitious house-building programme and we're going to build the business infrastructure we need for the 21st century, we have to make sure we can staff the construction industry."

The Conservative manifesto promises to deliver one million homes by the end of 2020, with a further 500,000 by the end of 2022.

Theresa May is sticking by her pledge to reduce net migration to below 100,000, something that was last achieved in 1997.

In its manifesto, Labour pledges to build a million new homes over five years - half of which would be council and housing association properties.

On immigration, it said it was offering "fair rules and reasonable management of migration", but dismissed targets as "bogus".

Both parties have backed a "right to remain", but it is unclear as to which workers from other parts of the EU will be allowed to stay in the UK when the country leaves.

The construction sector must recruit more than 400,000 workers a year if demand for new homes is to be met, according to consultancy firm Arcadis.

"We know that migration has a net positive impact on GDP, they (the Government) know all that, but there is this perception issue on the immigration question and they're going to have to find a way through that," Ms Leech added.