BUILDING A RECOVERY IN THE NEW YEAR?

Research released today reveals that building the homes required to meet Government’s projections of need would mean £1.2 billion of investment annually across the country and the creation of over 216,000 jobs.

The Home Builders Federation’s report, Reconstructing Our Regions, for the first time unveils the clear economic benefits of meeting housing need and tackling the housing crisis.

The report analyses the potential impact of the Government’s New Homes Bonus incentive to local communities and the upturn in employment in housing construction seen if local areas build the homes needed to meet the Government household projections over the next two decades.

It comes as the housing crisis worsened; last year saw the lowest number of homes built since 1924 and almost five million people on the social housing waiting lists. It also saw a record low number of first time buyers, with more and more people in their 30’s staying with their parents. In fact nearly a third of men and a fifth of women aged 20-34 now living with their parents, there is clearly a massive need for a major house building programme

Meanwhile Local Authorities have seen their funding cut severely – by 27% over the next four years – and unemployment passed two million this year. This demonstrates the importance of new house building for all communities and local economies across the country.

HBF Executive Chairman, Stewart Baseley, says: “Building houses is a win-win for communities across the country. Not only will families get the homes they need but local employment and increased investment will be boosted.

“Economic growth is fundamental to a successful recovery and housing has a huge role to play – I urge Local Authorities to reap the rewards of development and start building the homes the country needs.”

The only problem is the ConDem coalition's policies will make it virtually impossible to deliver the new houses people desperately need. The abolition of the regional housing targets could see even fewer houses being built because it amounts to a NIMBY's charter.

Despite the HBF's upbeat assessment of the economic and social benefits of a major new house building programme, there is little hope of a housing renaissance in the foreseeable future. The introduction the new homes bonus is not fit for purpose. It will do little if anything to address the housing shortage that is set to get worse following the government’s decision to scrap the Regional Spatial Strategies.