The CBI’s manifesto includes proposals from Housing Britain – building new homes for growth which examines the current state of the housing market and the urgent need to ramp up supply across the country. The report finds that shortages have created above-inflation house price rises, which is taking a £4 billion bite out of consumers’ pockets every year (£3.2 billion in housing-related costs, and £770 million in transport-related costs), money they could otherwise save or spend in the wider economy. The situation is also holding back many young people from getting onto the property ladder or renting a good home.
With housing affordability a major political, social and economic issue, the CBI is urging all political parties to commit to increasing supply. Among the measures it’s calling for are: the development of ten new towns and garden cities by 2025; doubling the number of new homes currently built, to 240,000 a year; and reforming Stamp Duty to end its 'distortive impact' on the housing market.
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.”
