The standard of new homes being built in the UK risks deteriorating because of fears over Brexit, housebuilders have warned.

Builders said they were laying off staff and instead increasingly relying on sub-contractors because of "years of Brexit uncertainty" and fears of a no-deal departure from the EU.

Contractors are less likely to "build to the right standard" and relying on them could lead to "reputation-damaging mistakes", an industry body warned.

A survey by the Federation of Master Builders, which represents small- and medium-sized construction companies, found that firms were increasingly reluctant to directly employee workers because of the risks of "economic shock-waves" if the UK leaves the EU this year.

It revealed a drop in employment among FMB members for the first time in over five years, with 21 per cent of companies saying they had laid off staff since the previous quarter.

This came despite the sector reporting an increased workload, with 27 per cent of companies saying they had more business in the second quarter of 2019 than in the previous quarter.

The survey also found that housebuilders were encountering problems in recruiting skilled workers, with 60 per cent saying they were struggling to hire bricklayers and 54 per cent finding it difficult to employ carpenters and joiners.

Employers have repeatedly raised fears about how they will fill skills gaps when freedom of movement ends after Brexit, given that many skilled workers, particularly in the construction industry, currently come from EU countries.

Brian Berry, chief executive of the FMB, said: “Years of Brexit uncertainty have resulted in construction bosses starting to change how they employ their workforce. To ensure their firms are ready for any economic shock-waves later this year, employers are reducing their number of direct employees and relying more on sub-contractors who are easier to shed if work dries up.

"The construction industry has always used a significant proportion of 'subbies' but the fact that direct employment is decreasing, points to Brexit nerves among construction bosses. This is the reality on the ground of what happens when years of uncertainty are inflicted on the construction industry. Furthermore, apprenticeship training has taken a hit as construction bosses are reluctant to take on young people when they can’t be sure of future projects going ahead.”

He added: “Worse still, the fear is that using more 'subbies' can lead to a drop in the quality of our builds. Direct employees, who are well-known to their firm, are much more likely to follow the ethos of their company and build to the right standard.

"If construction bosses are trying to protect their businesses by employing more 'subbies', they might not always know how good these 'subbies' are. Rebalancing the workforce may seem like a good idea at the time, but it could lead to reputation-damaging mistakes. If a downturn is on the horizon, reputation is everything and construction employers can scrutinise the quality of their workforce far more easily when they’re on the books.”

UK Housing Crisis: in pictures Show all 8 1 /8 UK Housing Crisis: in pictures UK Housing Crisis: in pictures Members of ‘generation rent’, as the younger generation is often known, are finding it far more difficult to get on the housing market than previous generations PA UK Housing Crisis: in pictures Then chancellor George Osborne visits a Help to Buy housing development in Lewisham in 2014. Osborne had announced the Help to Buy scheme in the 2013 budget as a means of helping first-time buyers on to the housing market PA Archive/PA Images UK Housing Crisis: in pictures In February 2017, then communities and local government secretary Sajid Javid issued a government white paper on housing. Introducing it in the Commons, he stated ‘our housing market is broken’ and that ‘the idea of owning or renting a safe, secure place of your own is, for many, a distant dream’ PA UK Housing Crisis: in pictures Residents of Fitzroy Road in Primrose Hill have demonstrated how urban areas might be built up without using extra land. 12 homeowners along the street all agreed to extend their house upwards by 1 floor. The government recently held a consultation on the revised National Planning Policy Framework, which, if approved, will support building above homes, shops and offices Google Earth UK Housing Crisis: in pictures Social Bite, a charity in Scotland, is creating a small housing community for the homeless. Up to 20 people will be housed for 12-18 months, with the charity’s focus being on transitioning the residents into permanent housing and employment AFP/Getty UK Housing Crisis: in pictures A homeless man was found dead yards from Parliament in February. His death was taken by many, including Labour leader Jeremy Corbyn, to be symbolic of the government’s poor record on housing. PA UK Housing Crisis: in pictures Emergency homeless shelters in London had to be opened numerous times throughout the past winter to house those unable to find a room in an ordinary shelter or hostel Getty UK Housing Crisis: in pictures Carillion, the UK’s second largest construction company, entered liquidation early this year. It held numerous government construction and maintenance contracts, for many of which the future is still uncertain AFP/Getty

Labour said the finding was evidence of businesses' fears over Boris Johnson's Brexit policy.

John Healey, the shadow housing secretary, said: “This report shows the Tories’ Brexit failure is taking its toll on construction, with builders fearing Boris Johnson’s ‘economic shock-waves’. This is more evidence of the housing crisis that Tory Ministers are failing to fix.

“After nine years of failure on housing, housebuilding is still lower than under Labour, fewer young people own their own home than in 2010 and the number of new social rented homes built has fallen by 80 per cent.

“The deep cutbacks in government investment for new affordable homes have failed and the Conservatives should now back Labour’s plans to build a million new genuinely affordable homes, including the biggest council housebuilding programme in more than thirty years."

A government spokesperson said: “As we prepare to leave the EU we are committed to enabling our construction sector to attract further investment and continue to grow.