One new home creates £316,000 of benefits for UK economy
Construction consultant Arcadis has released a new report that calculates the financial impact housebuilding has on the UK economy and urges the government to ramp up housing output.
Building Homes - Making Places calculates that building just one new home creates a financial ripple of £316,000, for the economy, UK businesses and local communities.
The report estimates that building one new home generates £250,000 of wider benefits through job creation and tax. On top of this, more than £53,000 is generated for businesses thanks to the lowering of wage premiums and money spent in the local area. Finally, nearly £13,000 goes back to the local community, with developers investing in roads, leisure facilities and additional affordable housing.
With concerns persisting over UK economic performance as Brexit negotiations begin Arcadis says housebuilding should urgently be made a key mandate by the government.
The report also states that in order to develop more housing there needs to be a radical shift in the way the nation builds, rents and buys its homes.
Arcadis argues that the answer to the UK’s housing crisis lies in providing truly flexible housing tenures in these locations at every level of affordability. To meet the requirements of modern living, a single development needs to include multiple options to buy, take shared-ownership, or short- and long-term lease arrangements.
Peter Hogg, Arcadis regeneration spokesperson, explained: “The benefits of building more homes are much greater than previously thought, so it makes perfect sense to put every ounce of effort in to get this right. Clearly, this is an extremely complex conundrum to solve but if we start making some real progress, the next 10-to-15 years could see a housing boom the likes of which has not been seen in over a century.
He added: “Following the shock election result, government must now work closely in cross-party cooperation to genuinely deliver on housing promises, along with devolved administrations up and down the country needing to take the lead around starting to build.”