London SME builders held back from addressing capital’s housing crisis
Government must support local builders to ease affordability crisis, boost homeownership, and relieve pressure on rental market
The Federation of Master Builders’ London Master Builder Awards 2025 reveals the capital’s top builders defying industry roadblocks
As London battles a worsening housing crisis, the capital’s most impressive SME builders are due to be recognised at this year’s Federation of Master Builders (FMB) London Master Builder Awards 2025. The evening will showcase some of the capital’s most iconic projects from the past year - including everything from turning disused plots into much-needed homes to delivering top-end smart renovations and luxury retrofits.
Sponsored by HazardCo, the event takes place at 7pm on Friday 25 April at the Hilton London Paddington. It will honour London’s leading builders, with regional winners going on to compete at the UK finals in September - where they’ll be in with a chance to win a brand-new Isuzu Pick-Up truck worth £42,000, courtesy of headline sponsor Isuzu.
State of the London Construction Industry 2025
A lack of housing supply is pushing affordability in the capital to breaking point. Despite growing demand, too few homes are being built - and the builders best placed to deliver them are being held back by rising costs and labour shortages.
In every borough, the average monthly mortgage now swallows over a third of a single first-time buyer’s income, according to Hamptons - a key affordability threshold. As a result, homeownership in the capital has dropped to 46.7%, while private renting has surged to its highest level since 1971 (30.1%).
But as demand intensifies, SME builders are reporting worsening conditions. Data from the Federation of Master Builders’ Q4 2024 State of Trade Survey reveals that in London:
- 36% of London SME builders have reduced their headcount
- 52% are struggling to hire general labourers, while 40% face shortages of carpenters and joiners
- 44% say skilled worker shortages have delayed jobs, and 8% report that jobs have had to be cancelled altogether
- 48% say their costs have increased, leading to 64% of these firms reporting lower-than-expected profits or losses
These barriers are preventing the very firms trying to address the crisis from doing more - leaving renters, buyers, and the wider economy feeling the strain.
Celebrating Builders
Events like the FMB London Master Builder Awards shine a light on the dedication and quality of these builders, celebrating their success amid industry-wide uncertainty. Some of this year’s most impressive nominees include:
· One standout entry saw Kisiel Ltd transform a disused Network Rail site in West London into 21 high-spec rental homes - complete with a zinc-clad roof and solar-powered communal areas. Please find a gallery here.
· In Stockwell, Home Republic Ltd converted a neglected basement into a boutique-style bar and relaxation room, blending luxury finishes, eclectic design, and smart tech - all on a tight budget. Please find a gallery here.
· C1 Construction & Development Services Ltd reimagined a tired 1960s house as a bold, 4,000 sq ft modern home, featuring a three-storey atrium, MVHR, and solar glass - delivered under budget. Please find a gallery here.
These entries reflect the breadth of London’s SME construction scene - from creating new homes to delivering high-end, design-led spaces - all while navigating cost pressures and complex builds.
But great projects rely on great people. One such story is Jenni Allan, an apprentice quantity surveyor at McLoughlin Decorating Ltd. Now in year four of her five-year degree, Jenni manages £4 million across 14 live projects - including The Dorchester Hotel - and mentors new apprentices at her firm. Her journey shows how quickly a career in construction can lead to meaningful, high-profile work.
Quote from Tom Peardon, Director of FMB London:
“Against the challenging backdrop of rising build costs, a shortage of skilled labour, and day to day challenges including ULEZ, it’s inspiring to see the number of high-quality entries on display at the London Master Builder Awards. FMB members have a key role in easing the housing crisis in London by providing much needed smaller schemes, retrofitting the existing housing stock and helping homeowners to realise their home improvement dreams.
“They also have a role encouraging the next generation into construction, giving young people a career path and lifelong skills. It’s great to see examples of both these important areas represented at the Awards this year. As your new FMB London Director I look forward to meeting you all on the night.”
Visit www.fmb.org.uk for more information.
For more information, contact us at: alain@etalcomms.co.uk
