Rising labour costs

Labour costs in London have jumped by 20% in the last 12 months, said John Callcutt

"They are now a major issue in London and the south east," he said. "A lot of the inflation in housebuilders' costs in the south east is due to labour and that is why some are looking to do more of their workload off-site in factories. On top of that, housebuilders have an ageing workforce."

Crest's answer to labour pressures has been to lift additional workforce across from the construction market. "People there are often better trained and motivated," said Callcutt "Traditionally there has been one workforce doing construction and another that does housebuilding. The crossover is helping us."