Ending England’s housing shortage would create 215,000 jobs but require an annual investment of more than £1.2 billion, the Home Builders Federation has said.
The government has estimated that an additional 232,000 new homes need to be built in England each year to keep up with the number of new households that are being created.
The Home Builders Federation said if this level of homes was built each year during the coming two decades, it would create more than 216,465 new jobs.
London would see the highest number of jobs directly created by the increase in building levels at more than 35,000, followed by Yorkshire and the Humber at 31,260 and the South East at more than 30,100.
But the building programme would require an annual £1.22 billion investment from the government’s New Homes Bonus incentive, under which local councils are rewarded for allowing development in their area.
The capital would need the biggest investment of just under £200 million a year, although the North East would need only £37 million annually, and the West Midlands around £86 million each year.
The ongoing housing shortage has been exacerbated by the credit crunch, with funding constraints for both developers and buyers contributing to new build levels falling to their lowest level since the Second World War during 2009.
Nearly five million people are on social housing waiting lists, while 50,000 families are living in temporary accommodation and 250,000 families are in overcrowded homes.
Stewart Baseley, executive chairman of the Home Builders Federation, said: “Building houses is a win-win for communities across the country.
“Not only will families get the homes they need but local employment and increased investment will be boosted both by the house building industry and by Government.
“Economic growth is fundamental to a successful recovery and housing has a huge role to play - I urge local authorities to reap the rewards of development and start helping us to build the homes the country needs.”
|Additional Direct Jobs Created and Central Govt Investment Received if House Building Matches Projected Need|
|Region||Annual Additional Jobs||Annual Potential New Homes Bonus Investment|
|Yorkshire & The Humber||31,260||£176,806,560|