House building is gradually becoming an important economic driver in the South East but is yet to develop its full potential, a new report from the Home Builders Federation (HBF) says.
‘The Economic Footprint of UK House Building – South East’ report, has found that to meet actual demand the region has to increase house building by 12,011 new homes every year.
Last year in the South East, 22,470 homes were started by private house builders, the public sector and housing associations.
If the region was to meet this need, the knock-on economic benefits would be:
- 51,648 jobs created
- 480 graduates and apprentices positions created
- 516,482 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 facilities
- 2,763 affordable homes built
- Payments of £265,964,002 to local authorities for further provision of new affordable homes
Commenting on the report, 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.”
