Economy to benefit from new home building

If the government needed any more encouragement to back homebuilders then a recent report revealing the economic benefits of new home building should do the trick, writes development specialist Richard Carr.

Economy

Richard Carr Build to Rent

Homebuilders positively affects the economy

A recent report from the Home Builders Federation explained a case study which highlighted the economic benefit of home building. In the South East of England, 22,470 homes were started by private house builders, the public sector and housing associations.

The economic benefit of this activity saw 96,621 jobs supported in the UK, 899 graduates and apprenticeship positions were created, whilst almost 1m new trees or shrubs were planted.

There were also a number of other contributions made on the back of the developments:

  • £36,109 was contributed to education
  • £28,896 was generated in extra council tax revenue
  • £224,700 in further tax contributions
  • £21,031 went towards new open spaces, community spaces or sports facilities, or enhancing existing resources through Local Authorities

Furthermore, 5,168 of the homes being built were affordable developments and payments of almost £500,000 were made to local authorities to provide more affordable homes.

“House building makes a huge, but largely hidden, social and economic contribution to the South East. And whilst housing output in the region has increased, we are still not delivering anywhere near what is needed,” said Stewart Baseley, executive chairman at HBF.

“As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits for everyone living in the region. As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to communities across the land.”

Potential

Interestingly, the report points out that the South East is currently 12,011 behind its target. If it could reach this number the economic benefits would be an extra 51,000 jobs, a further 480 graduate and apprenticeship jobs and 516,482 trees. Additionally, close to £20,000 would be contributed to education in the area.

Build taller

Richard Carr hopes people will take note of the report and see the benefit of development to the whole economy!

Perhaps now Brandon Lewis MP will force LPAs to accept that they should have a presumption to grant attitude, instead of being against development from the outset.

Richard’s next point is that every square metre of space shaved off a development is affecting the affordable homes contribution! Lastly, if we go higher we would solve the affordable homes crisis as developers would be left with large surpluses on S106 justification, it is not rocket science!