Cost of living pressures have shown no signs of abating during 2025, with price rises outstripping wage increases. Meanwhile, skilled labour shortages continue to impact economic growth.
The construction sector is expected to grow by an average 2.2% a year between 2025 and 2029, according to the Construction Industry Training Board, but recruitment needs are outpacing supply. The number of extra workers needed between 2025–2029 is estimated at 47,860 per year, totalling 239,300 new workers to be recruited over the five year period.
To meet cost-of-living pressures, construction workers are now prepared to relocate for better pay and benefits, with research data suggesting there is a north/south divide when it comes to construction salaries and remuneration packages. With this in mind, firms in the north may need to enhance their offerings to stay competitive in a mobile and talent-driven market.
Salary comparison – north vs south
A comparison of average salaries for some key construction roles in the north and south are outlined in the table below:
This is not the whole job market for construction. It is only a certain amount of jobs within the market. Can you make a reference to analysing a few roles within the sector?
Data from the Reed Salary Guide (2024). All values are average for the region.
Key indicators
Data from the Reed Salary Guide 2024 supports the argument that there is a north/south divide in construction salaries for key roles:
- A in the south earns on average £29,000 a year more than a Quantity Surveyor in the north
- can earn on average £8,000 a year more in the south
- Some roles such as that of a are equal in the north and south at £68,900, although a Site Manager based in London can earn £5,300 more
- Bucking the trend, can earn more in the north than the south, yet northern Project Directors earn significantly less than their southern or London based counterparts
- In all roles, London salaries are significantly higher.
What is driving the north/south divide?
Higher concentration of headquarters in London and the south
Gov.UK reports that London and the south have the highest number of business head offices per 10,000 adults. London is recognised as a global business hub with a stronger transport infrastructure, making it attractive to both private and public investors and large-scale development projects.
A workforce that is willing to move for the right pay
The Reed Salary Guide states that there has been an increase in the movement of talent within the property and construction sectors to secure higher paid roles. Research conducted by PfP-Thrive found that 30% of UK construction firms are concentrated in London and the south east, giving these regions the platform of opportunity to lure an agile workforce away from the north.
Modular construction and digital methods
Modular construction and digital methods such as BIM (Business Information Modelling), VR (Virtual Reality) and robotics are transforming the construction industry and creating roles with digital specialisation. According to Tech UK, the south generally has a more developed digital infrastructure with the biggest tech investment hubs. This offers more opportunities for the growing number of construction digital specialists in the south.
Candidate sentiment and job switching
Employers can take strategic steps to retain and attract top candidates who are concerned about the cost-of-living crisis and prepared to move companies for better salaries and benefits.
Some of the steps Strategic Resourcing advocates are:
- Offer better benefits if salaries can’t compete. According to Reed, 45% of workers want better benefits, yet only 18% of companies offer them
- Consider offering remote or hybrid roles to attract talent from other regions
- Upskill and retain workers through apprenticeships and internal training. This approach is especially important in regions where pay is flat.
Strategic Resourcing employer insights
Strategic Resourcing can support employers with:
- Finding the best local talent through regional expert recruiters
- Attracting skilled candidates in both high-wage and budget-conscious regions
- Reducing churn by helping you find the right candidates for your roles who can grow with your business.
We recently worked with Sterling Services to help them save time in their recruitment process and improve candidate quality. They wanted recruitment software that could be seamlessly integrated into their existing recruitment processes. Our guidance and software helped Sterling Services to streamline their hiring process and recruit for the long term. They told us: “A platform like this helps us to recruit people that are actually experienced and have the knowledge to move forward in our business.”
Speak to Strategic Resourcing about overcoming the north vs south construction salary divide
Contact us via our website for more information about our recruitment services designed exclusively for the construction sector. Alternatively, you can set up an account here.
