If the government meets its goal of building one-and-a-half million homes over the next five years, the UK’s economy could benefit from a £330bn boom, a report found.
The Economic Footprint of Home Building report carried out by Lichfields on behalf of the Home Builders Federation (HBF) in association with United Trust Bank (UTB) found that the delivery of 240,000 homes in England and Wales last year generated £53.3bn of economic output and supported 834,000 jobs, including 10,000 apprentices and trainees.
The HBF estimates that 3.4 jobs are supported for every dwelling built.
The research also suggested that the homes built provided £6.4bn in revenue for HMRC, as well as £9.2bn of new affordable housing and a £1.5bn investment in infrastructure.
The research estimated that housebuilders generated more than £542m of stamp duty land tax (SDLT) each year through the sale of new-build homes.
Additionally, £16.6bn was spent in the construction supply chain last year and £216m was invested in open space, community and sports facilities.
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Based on these findings, HBF and UTB suggested that if the government were to build one-and-a-half million homes over the next five years as proposed, this would result in £42.5bn spending in local shops and £40bn in tax receipts, including £3bn in additional council tax.
Additionally, this action would support more than one million jobs each year, including more than 10,000 graduate and apprenticeship roles.
This would mean support for an additional 347,500 jobs when compared to the one million homes completed under the last government.
Further, the construction of one-and-a-half million new homes would include £57.5bn for affordable housing and £1.35bn in spending for open spaces.
It would also result in £9.4bn in funding for infrastructure, including £4.2bn for new and improved schools.
Neil Jefferson, chief executive of the HBF, said: “As well as addressing some of the major social issues the country faces, building more homes drives economic activity. The housebuilding industry sustains hundreds of thousands of jobs, generates huge receipts for the Exchequer and boosts investment in infrastructure and amenities across the country.
“Delivering new developments provides energy-efficient, modern homes, and ploughs investment into new roads, schools and community facilities that benefit both new and existing residents.”
He added: “If government can deliver on its ambitious housing targets, it will reap significant social and economic benefits. The industry welcomes the swift and decisive actions to address the constraints in the planning system, but more is needed to accelerate growth. The lack of affordable mortgage availability means more support for buyers is needed. Creating demand for new homes provides the confidence the industry needs to invest and deliver both private and affordable homes.
“The upcoming Budget provides an opportunity for the government to take more positive steps to address the mounting housing crisis and to commit to their pledge to get Britain building again.”
Adam Bovingdon, head of property development at UTB, said: “This important report illustrates the huge contribution the housing industry makes to the UK economy and to the local areas surrounding new housing developments. UTB is a staunch advocate for regional housebuilders and entrepreneurial developers and the important contribution they make to delivering the UK’s housing needs.
“Our funding supports the completion of around 5,600 new homes at any one time, bringing new jobs, new facilities and new money to areas where investment can make a big difference.”
