The data from the 2016 PSD / Building Magazine salary survey suggests that the house building market has defied pre-referendum critics with 71% of developers increasing unit production and 41% increasing head count.

While these types of surveys can never be one hundred percent accurate due to the widely differing salary packages offered by private and public, large and small companies, it gives an interesting insight into regional variations and offers an excellent tool for salary benchmarking.

  • Please  CLICK HERE   to view the 'published survey' .
  • Please  CLICK HERE   to view the 'raw data'  with all the detail you need.

PSD Overview:

The vote to leave the EU on 23rd June 2016 will no doubt be marked down as a poignant moment for the political and economic story of the UK. The memory of 2008, still fresh in our minds, played an important part in our reaction to the 'Leave Vote' as many paused for breath amid the uncertainty for the future.

House Construction The data from the 2016 PSD / Building Magazine salary survey suggests that the house building market has defied pre-referendum critics with 71% of developers increasing unit production and 41% increasing head count. 

Housebuilder share prices fell by up to 40% after the referendum, given Treasury forecasting that house prices would be hit by up to 18% by a leave vote. The reality is that the sector has largely carried on trading unaffected, with most builders reporting continuing strong sales. The salary survey data shows this dynamic is translating into a continuation of the strong demand for housebuilder staff seen in recent years, with big salary increases and skilled and experienced staff at a premium.

Building Commentary:

The average pay packet of housebuilding managing directors in London has topped £200,000, new research by Building reveals. Bosses in the capital now take home an average of £201,000 - a 3% rise on last year - while their peers in Yorkshire and the North-east performed the worst in the regions with an average salary of £138,400 - 45% down on the London figures. The average salary of the housebuilding managing director is £160,580 - up nearly 3% on the £156,000 racked up in 2015.

London performed the best in all the disciplines, which include finance, commercial and project director roles, with average director salaries in the capital rising by 6.3% followed by 5.5% in the South-east. The weakest region was the North-west where salaries increased by just 0.4%.

The research has been carried out by recruitment specialist PSD whose Associate Director Elliot Course said housebuilders are still facing a shortage of staff, particularly in construction-related roles.

In a sentiment survey carried out last month - three months after the Brexit vote in June - a balance of 75% of respondents identified skills shortages as a threat to their business.

Course said: “Clients did have a pause [after Brexit]. But in most cases it's now back to business as usual. I have a number of clients with ambitious growth plans. There is still an acute shortage of people.”

Karen Jones, group HR director at listed housebuilder Redrow, confirmed there was a hiatus in recruitment after the EU referendum, but added: “We never stopped recruiting. We looked around but realised it was no different.” Jones said Redrow expects to add a further 15% to its 2,000-strong payroll - although this is down on the 25% it has been growing by in each of the last three years.

And while some starts were paused by London developers in the aftermath of the June vote, many are restarting - with housebuilders hanging on to staff rather than letting them go. Cenkos analyst Kevin Cammack said: “I don't hear any stories of people being laid off.”

The PSD survey also revealed that the role with the biggest average annual increase was technical director whose pay packets jumped by 4.6% from 2015. Technical directors now earn an average of £93,625.

Here is the link to Building magazine  & the  article appears here  (registration required - free).

For any questions please contact Elliot Course at PSD Group either on 0207 970 9792 or 0161 234 0380. 

Elliot Course
Associate Director
+44 207 970 9792
Email