Despite a critical shortage of skilled people in the building industry at a time when the industry is booming, builders are putting the future at risk by abandoning responsibility to train new workers, said the skills watchdog.

Over the next 10 years the number of new houses required is estimated to be in the region of 1.5 million, yet the industry’s own research shows that it is 300,000 short of its needs in view of contracts that are already planned.

Turnover in the construction industry is currently £140 billion per annum. It employs 2 million people at any one time – one in 14 of the workforce. The industry is booming and will face increasing demands over the next 5 to 10 years to complete contracts for the health, education, transport and heritage sectors.

But according to the Adult Learning Inspectorate the industry has all but abandoned its responsibility to train people for future needs. Only one in four companies do any apprenticeship training at all.

Nicky Perry, director of inspection at the ALI, said: "During the 1970s 100,000 people were being trained every year across the range of construction skills that are needed – carpentry, plastering, bricklaying, glazing, plumbing and scaffolding to name but a few."

"However, last year fewer than 40,000 entered the industry – and the statistics show that only 34% of them will complete their training. The largest provider of training in the building crafts is the Construction Industry Training Board (CITB) with 10,000 learners every year."

"Only 25% of them will complete their qualification. The industry is squandering its own future by not facing up to the critical problems endemic in its training methods today."

The industry should take on more women and ethnic minority workers, the report said. Only 1% of the construction workforce is female, yet researchers spoke to many women who would like to work in the industry.

However, the research team found that achievement of qualifications for those in construction services like gas and electrical fitting are much better at 60%, probably because they have to be licensed in order to work.