City firm calls for £10bn social house building push

Aaron Morby 12 years ago

City dealing giant Tullett Prebon is urging Government to take dramatic action to boost the economy with a £10bn social house building programme.

The dealing brokerage said very few options remained to stimulate the economy and argued house building now looked a viable way to drive growth.

Head of global research at Tullett, Dr Tim Morgan, said cash could be raised from a tax on second homes, and receipts from the sale of the most expensive social housing.

The idea of selling off  the most valuable social homes to build more stock was first floated by think tank Policy Exchange last month.

It estimated this could raise up to £6bn to build 80,000 and 170,000 units a year.

But Morgan argues the programme needs to be even more ambitious to get the economy moving again.

He also called on Government to avoid time-consuming “private-public gimmicks like PFI”. And argued for councils or housing associations to deliver the plan.

“The government and social sectors should act as owners and commissioners of new housing, while the role of the private sector would be to build the new homes as contractors.”

Morgan warned the Government’s main challenge would be tackling the ‘Nimbyism’ created by such an ambitious social housing programme.

He said that Government would almost certainly need to reform and streamline the planning system, face down local objections and expose selfish interests.

“The political challenges facing a new building programme should not be under-estimated, but rational calculation surely shows that this is far exceeded by the economic potential of a national housing programme.”

He added: “Longer-term, a house-building programme will pay for itself, both through enhanced economic growth and through a reduced housing benefit burden.

“Nearer term, the divestment of the highest-cost social housing,  and additional levies on second homes, can make significant contributions to defraying the cost.”

The paper comes as the Government prepares to unveiled fresh plans to boost house building next month.

Latest news

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
19 hours ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
17 hours ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
24 hours ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
1 day ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
1 day ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
2 days ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
23 hours ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
2 days ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
2 days ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
2 days ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
2 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
3 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
3 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
2 days ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
3 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
3 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
3 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
3 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
3 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
3 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
3 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
4 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
4 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
4 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
4 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
4 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
4 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
5 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
5 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
5 days ago

Contractor services