South East: House builders providing more than just homes as huge additional benefits are revealed
A new report from the Home Builders Federation, The Economic Footprint of UK House Building – South 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 South East. And with the region still not building enough homes compared to its need, the report also highlights just what the South East is missing out on.
Last year in the South East, 22,470 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:
96,621 jobs were supported899 graduates and apprentices positions were created966,210 new trees or shrubs were planted£36,109,290 was contributed towards education in the area£28,896,420 in extra council tax revenue was generated plus £224,700,000 in other tax contributions£21,031,920 towards new open spaces, community spaces or sports facilities, or enhancing existing resources was paid to Local Authorities5,168 new affordable homes were builtPayments of £497,553,210 were made to local authorities for further provision of new affordable homes
While house building is increasingly being recognised as a key driver of economic growth, there are still not enough new homes being built in the region. In the South East, this manifests itself as a shortfall of 12,011 homes every year. If the region was to meet this need, the knock-on economic benefits would be:
51,648 jobs created480 graduates and apprentices positions created516,482 trees and shrubs planted£19,301,998 towards education in the area£15,446,403 in extra council tax revenue£120,112,000 in extra tax contributions£11,242,483 contributed to open spaces, community, sport and leisure facilities2,763 affordable homes builtPayments of £265,964,002 to local authorities for further provision of new affordable homes
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 South East. And whilst housing output in the region has increased, we are still not delivering anywhere near what is needed. As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits for everyone living in the region.
“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 South East have risen by 17.3% over the last two years. However, the performance of markets within a region can vary substantially. These variations are determined by the economic, demographic and affordability profile of demand versus the quantity and type of local housing supply. The combination of these factors determine how the housing crisis has affected each local market. Our forecast for house prices in the South East over the next five years is for 26.4% growth.”
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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