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New housing developments boost wider economy

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
09/03/2017

New housebuilding benefits more than just those people purchasing a home, an industry trade body has claimed.

The Home Builders Federation (HBF) said the country’s economy benefits to the tune of £19.2bn, employing more than 600,000 people and generating £1.4bn in tax.

However, it did admit that the UK was still failing to build the number of new homes it needs. At present the UK is building around half of its 240,000 homes a year target.

The report said boosting building by 100,000 homes a year would generate an additional 430,000 jobs and a further £11.9bn in economic output.

However, only around 20,000 of these homes would be affordable.

The HBF has called on the government to take a longer term view on the market and take steps to boost supply. It calls on the future government to extend the Help to Buy equity loan scheme until 2020 and create a more business friendly planning system.

Matthew Spry, head of economics at Nathaniel Lichfield & Partners, which conducted the research on behalf of the HBF, said whatever parties made up the government big decisions had to be made.

“In recent years the UK has failed to hit house building targets, and last year alone we fell short by at least 100,000 homes. It is now widely accepted that we need to build more homes, and quickly,” he said.

“If we can rise to that challenge and build at least the 100,000 extra new homes that the UK needs each year, we stand to gain immensely: £13.6bn boost to economic growth, 430,000 extra jobs, a minimum of £1.2bn more tax, more investment in new schools and in other community infrastructure.

“These benefits need to be recognised in national policy for housing and the economy, and to be properly reflected in the decisions that are made by local authorities and communities in deciding on proposals for housing development. People need homes to live in. But further, our report shows more housing will make us all more prosperous.”


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