We believe Wales needs more homes, a skilled workforce and a building industry that can deliver a low-carbon future. Local builders are central to meeting these challenges, yet too often the policy environment makes it harder, not easier, for them to succeed.
Through the Builders’ Manifesto for Wales 2026, we set out how the next Welsh Government can unlock the full potential of small and medium-sized (SME) building firms. With the right support in place, builders can drive economic growth, increase housing supply and raise standards across the industry.
We developed this manifesto through our work with FMB members across Wales. It reflects the experience of builders working in local communities, training apprentices, delivering homes and maintaining the buildings people rely on every day.
Download the Manifesto
Lawrlwythwch y Maniffesto
Why the building sector matters in Wales
We represent a sector that underpins Wales’ economy, workforce and climate ambitions.
- Around 15% of all Welsh businesses operate in the built environment sector, generating roughly 10% of national economic activity.
- 99% of construction firms are SMEs, most employing fewer than 13 people. This means economic value stays local, supporting communities across Wales.
- Construction provides one in every 14 jobs in Wales, offering well-paid, skilled careers with clear progression routes.
- Welsh homes account for around 20% of national emissions, placing builders at the centre of delivering net zero.
With the right policy framework, local builders can deliver more homes, train the next generation and play a leading role in improving the energy efficiency of Wales’ housing stock.
Our key asks for the next Welsh Government
Through this manifesto, we focus on four areas where policy change would have the greatest impact for builders, communities and the Welsh economy.
Access to housing: a growing crisis
Housing affordability is one of the most pressing challenges facing Wales. Wages have failed to keep pace with house prices, pushing more people into the private rented sector and driving up rents.
Local SME housebuilders, once responsible for 40% of new homes, now deliver just 9%. Reversing this decline is essential if Wales is to increase housing supply and create a more balanced and productive housing market.
What we are calling for
- Ambitious national housing targets across all tenures that exceed calculated need and address the backlog.
- Mandatory allocation of small sites in development plans to enable SME participation.
- Raising the threshold for major developments to 50 units to reduce regulatory burdens on SMEs.
- Access to finance for the pre-planning phase of housebuilding to support innovation and new entrants.
Retrofit and energy efficiency of homes
Wales has one of the oldest and least energy-efficient housing stocks in Europe. One-third of homes were built before 1919, and most of the homes that will exist in 2050 are already standing.
Decarbonising existing homes is essential to meeting Wales’ net zero target. Builders are ready to play their part, but current approaches risk excluding SMEs through excessive cost and bureaucracy.
What we are calling for
- A long-term national retrofit strategy for private homes.
- A proportionate, tiered quality standard for private-sector retrofit.
- Better integration of heritage skills across retrofit programmes, rather than treating them as an add-on.
Skilled labour shortages: a broken pipeline
The construction industry faces a growing skills gap. Demand for labour far exceeds supply, while the workforce continues to shrink.
Wales needs an additional 2,200 construction workers each year, yet around 300 leave the workforce annually. One-third of workers are over 45, while only 20% are aged 16–24.
The core challenge is not attracting learners into training, but supporting them into sustained employment.
What we are calling for
- A nationally co-ordinated construction skills strategy.
- Rebalancing funding away from FE volumes and towards incentives for SMEs to employ apprentices.
- Funding models that reward progression into employment, not just enrolment.
- Expansion of shared apprenticeship schemes across Wales.
Building safety and standards
Rogue traders undermine trust in the industry, undercut professional builders and devalue skilled work. At present, anyone can call themselves a builder, with no minimum standards in place.
We support efforts to raise standards following the Grenfell tragedy. However, reforms must be implemented in a way that SMEs can realistically understand and comply with.
What we are calling for
- A UK-wide licensing scheme to establish a baseline level of competence across the construction sector.
- Clear, practical guidance to help SMEs comply with new building safety legislation in Wales.
A practical manifesto, grounded in experience
This manifesto is grounded in the experience of builders working across Wales. It reflects the realities of running a small building business while delivering the homes, schools and public buildings that communities depend on.
It sets out practical, achievable changes that would allow builders to do more for Wales, with confidence and pride in their work.
Find out more
- Download the Builders’ Manifesto for Wales 2026 (PDF)
- Lawrlwythwch y Maniffesto adeiladwyr i Gymru 2026 (PDF)
- Read about the Senedd launch event.
- Contact FMB Cymru to discuss the manifesto or request a briefing.
