Risk of modern slavery in housebuilding ‘poorly understood’

The risks of modern slavery in the housebuilding sector are “poorly understood” despite its size and political importance, a new report says.

Residential accounts for around 40 per cent of UK construction output, but academics from King’s Business School found that the housebuilding sector is is often excluded from research on labour exploitation and warned that a drive to build more homes is not matched by an increased ability to crack down on labour exploitation.

The report highlights that exploitation in the construction sector overall includes unpaid wages, health and safety breaches and even debt bondage and forced labour.

Housebuilding may be particularly vulnerable to these risks due to high levels of informal work and widespread use of labour intermediaries, said the researchers, who were commissioned by the Director of Labour Market Enforcement (DLME) and the Modern Slavery and Human Rights Policy and Evidence Centre.

‘Bogus’ self-employment, where a worker is classified as self-employed but works under conditions similar to direct employment, is also a risk factor, especially among migrant workers facing language barriers, restricted rights or limited awareness of how to report abuse.

Several Construction News investigations into modern slavery in the construction industry are cited in the report for their highlighting of the issue, including four that demonstrated a link between the issue and the housebuilding sector.

Last year’s exclusive revelation that the rate of arrests for illegal working in the construction industry more than doubled in 2023 amid a government crackdown on immigration was also cited as evidence of wider non-compliance with labour laws. The researchers said exploitation is often tied to other forms of criminal activity.

Furqan Suhail, postdoctoral researcher and report co-author, said there are serious gaps in understanding modern slavery in housebuilding.

“There is little quantitative data, and few studies include the experiences of affected workers. Most focus instead on organisational or industry responses,” he said.

“There is a real concern that the drive to ‘get Britain building’ is not being matched by adequate enforcement capacity. Modern slavery risk thrives where monitoring is weak and accountability unclear.”

The report calls for investment in data collection, including worker-focused research, improved reporting pathways, and clearer enforcement protocols that can better address risks before they escalate into severe exploitation.

It also said that the DLME should better research how government agencies and enforcement bodies including HMRC, the Gangmasters and Labour Abuse Authority, Home Office and Health and Safety Executive can better share intelligence on the issue.

The government announced a consultation yesterday (29 October) on extending the Right to Work scheme.

It said the consultation aims to gather views on how the extension should be implemented and enforced, and how the process can be simplified so businesses can fulfil their legal responsibilities.