Member Article

Economic Report: London needs 300% growth in housing to boost economy

Last year 18,050 new homes were built in London, compared to a need for 62,000, according to a report by the House Building Federation and planning consultancy, Nathaniel Lichfield and Partners

From the report, it can be estimated that if the additional homes that London needs every year were built, the capital would see 190,000 additional people employed, subsidy for an extra 10,000 new affordable homes as well as £70m for schools in the capital.

London would benefit from , more than £40m of investment in leisure and sport facilities and £56m in new Council Tax receipts for London Boroughs to fund local services.

London’s house building industry supports 55,000 jobs and provides 4,200 affordable homes, built or financed by private house building with a further £130m paid to local authorities as a contribution to more affordable housing.

Matthew Spry, senior director, head of Economics at Nathaniel Lichfield & Partners, which conducted the research on behalf of the HBF, highlighted the benefits that could be achieved from increasingly supply to match the growth in number of households.

He said: “Our research has shown the economic and wider societal benefits that new houses can bring to communities and the national economy.

“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.

“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.”

Speaking at the report launch today Stewart Baseley, executive chairman of the HBF, is expected to say: “House building makes a huge largely hidden social and economic contribution to London plc. Whilst housing output in London has increased, we are still not delivering anywhere near what is needed.

“As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits for Londoners. House building is a huge employer both directly and through supplier companies.

“The construction of new homes also brings with it huge investment in local infrastructure and services. House builders are direct providers of new schools, health facilities, community halls, open spaces and leisure centres. These are the very things that turn a collection of houses into communities; brand new places where people want to live.

“As we approach this important election, politicians simply must prioritise housing policies to help house builders we can build the homes we need. As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to London.”

This was posted in Bdaily's Members' News section by Ellen Forster .