Publishing its business manifesto ahead of the political conference season, the lobby group estimated that the shortages were costing consumers £4 billion a year due to the impact of above inflation house price rises.
It called on politicians to take bold decisions ranging from building on low-quality green belt land to overhauling stamp duty in order to help meet the 240,000 new homes it believes need to be built every year.
The CBI said that more than 200,000 homes have been delivered in only four out of the last 14 years
Meanwhile in 2010 fewer houses were built in any year since the Second World War. This gap in demand is pushing up prices, with a 56 per cent increase in prices nationally since 2004.
Katja Hall, CBI deputy director-general, said:
“With conference season around the corner, we need all political parties to put forward election pledges which tackle the UK’s challenges head-on so that we deliver prosperity for everyone not just from next May, but for a generation. Addressing the chronic housing shortage should be near the top of every party’s to-do list.
A perfect storm is brewing in the housing market. With demographic changes and demand currently dramatically outstripping supply, now is the time for action. Political parties of all colours have made the right noises on the need for more homes, but without serious action the ambition to own a home will become more and more out of reach to ordinary people.
Our research shows the national housing shortage is taking a £4 billion slice out of consumers’ pockets.
We need a stronger response from politicians who must be ready to take bold decisions from building on low quality green belt land to overhauling Stamp Duty.”
The CBI is calling for the development of ten new towns and garden cities by 2025, alongside incentives to help older people looking to downsize or those families wanting to extend homes.
Among other measures in its manifesto, the CBI wants a roadmap for increasing capital spending - once the deficit is eliminated - as a percentage of UK GDP in the next parliament and beyond.
The British Chambers of Commerce (BCC), which represents businesses of all sizes in the UK, has also identified a number of core themes it believes must be at the heart of any plan for government.
Among the measures in its manifesto, it wants to see more financial support for working parents and a more “pro-business” Home Office.
This would aim to reduce bureaucracy, costs and delays for foreign business visitors, skilled individuals seeking to work in the UK and British nationals seeking to renew their passports from overseas.
