Housebuilding surge could create 350,000 jobs & drive economic growth
A new report from the Home Builders Federation (HBF) suggests that building 1.5 million new homes over the current parliamentary term could inject £330 billion into the UK economy and create 350,000 additional jobs annually.
Key insights from the report include:
-
- In 2023, housebuilding in England and Wales generated £53.3 billion in economic output and supported 834,000 jobs.
- These homes contributed £6.4 billion in tax revenue (including Stamp Duty, corporation tax, and PAYE), £9.2 billion in affordable housing, and £1.5 billion in infrastructure investment.
- A further £16.6 billion was spent within the construction supply chain, and £216 million was invested in community facilities, such as open spaces and sports facilities.
Potential benefits of meeting the 1.5 Million target:
- If the target of 1.5 million homes is met, the economic benefits could include £57.5 billion invested in affordable housing, £40 billion in tax revenues, and £9.4 billion in infrastructure funding – £4.2 billion of which would be allocated to new and improved schools.
- Local shops could see an extra £42.5 billion in spending, while £1.35 billion would go toward open space development and community facilities.
Job creation & economic growth:
- The report predicts an additional 347,500 jobs every year, including over 3,400 apprenticeships and graduate positions.
- Economic activity would rise by £111 billion, with £19 billion directed to affordable housing, and £13 billion in additional tax revenues, including £1 billion from council tax.
- Infrastructure funding would see a £3.1 billion boost, including £1.4 billion for new and upgraded schools.
Obstacles to delivery:
- HBF points out that certain challenges, such as issues with the planning system and demand constraints, must be addressed. Builders can only construct homes if there is sufficient demand from buyers.
- The report also highlights the ongoing nutrient neutrality issue, which is currently preventing the development of around 160,000 homes. Resolving this could significantly accelerate housing delivery.
