House builders providing more than just homes as huge additional benefits are revealed in the North East
A new report from the Home Builders Federation, The Economic Footprint of UK House Building – North East, has revealed for the first time the full extent of the contributions that house builders provide as a result of building new homes in the North East.
Last year in the North East, 7,160 homes were started by private house builders, the public sector and housing associations. Based on the findings of the report, the economic footprint of this house building meant that:
30,788 jobs were supported 286 graduates and apprentices positions were created 307,880 new trees or shrubs were planted £11,506,120 was contributed towards education in the area £9,207,760 in extra council tax revenue was generated plus £71,600,000 in other tax contributions £6,701,760 towards new open spaces, community spaces or sports facilities, or enhancing existing resources was paid to Local Authorities 1,647 new affordable homes were built Payments of £158,543,880 were made to local authorities for further provision of new affordable homes
Clearly, house building is increasingly being recognised as a key driver of economic growth, capable of stimulating and maintaining a strong economy as well as providing much needed housing to support sustainable communities.
Commenting on the release, Stewart Baseley, executive chairman at HBF, said:
“House building makes a huge, but largely hidden, social and economic contribution to the North East. And whilst housing output in the region has increased, we are still not delivering anywhere near what is needed nationally.
“As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to communities across the land. People often don’t realise that the new community centre or school or football pitch has been paid for as a direct results of new homes.
“Ultimately, providing new homes for people also means better facilities for the wider community. These are the very things that turn a collection of houses into communities; brand new places where people want to live.”
Neal Hudson, Associate Director at Savills, also commented:
“House prices in the North East have risen by only 1.2% over the last two years according to the Land Registry and are still 22% below their 2007/08 peak in nominal terms. And our forecast for house prices in the North East over the next five years is for 12% total growth. That is below the national average of 17% and the lowest of any region we forecast.
“However, the performance of markets within a region can vary. For instance, house prices in North Tyneside are only 12.6% below their previous peak while in Middlesbrough they are 33.9% below. Therefore it is important to understand not just regional but also local housing market drivers and dynamics.”
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Notes to Editors:
The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. HBF member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk