Planning and development consultancy Lichfields has released a new report, showing that the house building industry in England and Wales is now worth £38 billion a year. The research also shows that almost 700,000 jobs are supported by the industry.
Over the past four years, the UK economy has seen a massive boost, as house building activity has increased by 74%.
Overall, the report has also revealed the following about the house building industry last year:
- £2.7 billion has been generated in tax revenues (via Stamp Duty Land tax, Corporation tax, National Insurance etc.)
- £841m has been provided towards infrastructure, including £122m for new/improved schools)
- 90% of the £11.7 billion that has been spent with suppliers has stayed in the UK
- £12 billion has been invested in land for new homes
- There is now a plan for 50,000 affordable houses to be built, through section 106 agreements. These will be worth over £4 billion
The report also highlights that this increase in housing supply is having a big impact on the industry. The Government currently has a target of providing 300,000 new houses a year in England. If such targets are met, then we could end up seeing benefits such as:
- £14.2 billion in economic activity
- 260,000 jobs created
- £1.1 billion in tax revenue
- £384m investment in infrastructure
Stewart Baseley, executive chairman of the Home Builders Federation (HBF), has said: “The house building industry is a massive driver of the UK economy and makes a huge contribution to communities across the country.
“While delivering much-needed new homes of all tenures, house builders are quietly creating and sustaining jobs, generating receipts for the exchequer and boosting investment in infrastructure and amenities in villages, towns and cities.
“As well as becoming ever more reliant on private builders to deliver affordable housing through planning agreements, vast sums are ploughed into new roads, schools and community facilities every year.
“The unprecedented increases in housing supply in recent years have delivered significant benefits for UKPLC and the industry is investing in more land and people to enable it to go further and build more.
“The industry is calling on Government to work with it to create the policies that will allow it to deliver the government’s ambition of 300,000 homes a year in England. Delivering more homes will not only help solve our acute housing crisis, but also provide a further boost to communities and economies up and down the country.”
Matthew Spry, Senior Director at Lichfields commented: “We were delighted to be asked by the HBF to update our original 2015 report. In preparing our analysis we drew upon a wide range of official and well-established data sources, as well as engaging directly with house building companies including to capture information they assemble as part of Corporate Social Responsibility reporting.
“We have again identified the very significant economic contribution made by house building and how boosting supply to achieve the Government’s aspiration of 300,000 homes per annum in England will not only help improve access to housing for people across the country but also deliver a significant economic and infrastructure dividend.
“It is important that this contribution is properly recognised in planning and investment decisions across central and local government, agencies and Local Enterprise Partnerships.”