CBI calls for 10 new towns and garden cities

Aaron Morby 10 years ago
Share

Britain’s business leaders are calling for a sustained house building push to deliver 240,000 homes a year.

Addressing the housing shortage should be the top of every political parties to-do list in the run up to the next general election, according to a new CBI business manifesto published today.

The chronic shortage of homes is costing people an estimated £4bn a year in higher housing costs and extended transport costs.

The CBI calls for 10 new towns and garden cities, reforms to Stamp Duty and extra help for small and medium sized house builders, which are still struggling to find finance for schemes.

The report finds that shortages have created above-inflation house price rises, which is taking a £4bn bite out of consumers’ pockets every year.

This is made up of £3.2 bn in housing-related costs, and £770 m in transport-related costs.

The situation is also holding back many young people from getting onto the property ladder or renting a good home.

Among other measures the CBI is calling for is a roadmap for increasing capital spending – once the deficit is eliminated – as a percentage of UK GDP in the next parliament and beyond.

Business leaders also want to see an independent body to determine the UK’s infrastructure needs and also to create a gold-standard vocational A Level system.

Katja Hall, CBI Deputy Director-General, said: “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.

She said: “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.”

To satisfy current levels of demand, 240,000 new homes need to be built a year.

But over 200,000 homes have been delivered in only four out of the last 14 years, while in 2010, fewer houses were built than in any year since the Second World War.

This gap in demand is pushing up prices, with, on average, a 56% increase in house prices nationally since 2004, and a 90% increase in London.

With housing affordability a major political, social and economic issue, the CBI is urging all political parties to commit to increasing supply.

Key measures

  • Development of ten new towns and garden cities by 2025
  • Doubling the number of new homes currently built, to 240,000 a year
  • Reforms to Stamp Duty to end its distortive impact on the housing market
  • Give local authorities more power to release low quality green belt land
  • Spend more on capital support for new homes by redressing the balance with housing benefits
  • Introduce fiscal incentives to help older people looking to downsize, or families wanting to extend homes.

Latest news

Police ban mobile cranes from roads over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
1 hour ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
5 hours ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
10 hours ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
9 hours ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
10 hours ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
1 day ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
11 hours ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
11 hours ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
1 day ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
1 day ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
1 day ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
2 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
1 day ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
1 day ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
1 day ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
2 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
2 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
3 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
2 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
2 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
2 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
2 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
2 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
2 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
3 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
3 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
3 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
3 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
5 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
6 days ago

Contractor services