CBI calls for 10 new towns and garden cities

Aaron Morby 8 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

Civils boss banned for £200k false Covid loans

Yorkshire plant hirer and civils boss wrongly claimed bounce back loans for four firms
49 mins ago

Green light for Skanska £507m A428 dualling job

Construction is due to start at the end of this year on 16km dualling job
37 mins ago

W Stirland set for administration after nearly 100 years of trading

Family-run south coast firm has been building since 1928
15 hours ago

BAM UK delivers steady first half growth

UK profit up 16% to around £40m from revenue at £1bn
15 hours ago

Crane hirer M&M enters voluntary liquidation

Family-owned mobile crane ceases trading amid soaring costs and depressed hire rates
15 hours ago

£161m funding for Oxford Railway station revamp

Kier to deliver first project under the new Rail SPEED initiative
15 hours ago

VolkerFitzpatrick wins 240km wind farm cable job

Contractor lands connections deal from energy giant Ørsted
15 hours ago

Seddon Construction returns to profit

Plan to target more diverse work pays off as construction revenue rises 27% to £166m
15 hours ago

Faults found on giant HS2 green tunnel segments

"Quality issues" found on precast segments at HS2 site pioneering off-site construction
2 days ago

Balfour Beatty UK construction returns to profit

Group profits double to £82m in first six months after construction arm bounces back
2 days ago

Bidding starts for £4.5bn Southern Construction Framework

5th generation deal includes new £1m-£5m lot for south west
2 days ago

Persimmon expands output at off-site factories

Housing giant hits 31% profit margin with another £750m returned to shareholders
2 days ago

Modular specialist Algeco lands £31m MoD double

Construction to start this year on two new sets of army barracks
2 days ago

Hill gets go-ahead for North London estate rebuild

750 homes to be built at Douglas Bader Park estate in Colindale
2 days ago

Bid race for £210m Huddersfield town centre revamp

Kirklees Council's Cultural Heart scheme will be split into two major projects
3 days ago

£100m Darlington Station revamp enabling works start

Willmott Dixon set to deliver major station upgrade project
3 days ago

Demolition worker gets huge payout after losing leg

Compensation settlement will fund latest prosthetic limb technology for site victim
3 days ago

Plant hirer Vp abandons sale plan

Chairman Jeremy Pilkington says the plant hirer failed to find a suitable new owner.
3 days ago

Turner & Townsend on board for Sheffield Supertram upgrade

Consultant to help deliver programme over next seven years after £570m funding deal
3 days ago

Green light for new £33m Ipswich logistics park

Construction to start this October on latest Trebor Developments site
3 days ago

Piling starts on pioneering double composite HS2 viaduct

Wendover Dean Viaduct ‘double composite’ structure will halve carbon emissions
3 days ago

ISG pauses work on £300m gigaplant

Construction work rescheduled to reduce costs at giant car battery plant
4 days ago

Tory leadership battle delays bidding for HS2 phase 2a

Prequalification for £5.2bn-£7.2bn route to Crewe put back to September
4 days ago

Greswolde Construction goes under

Solihull contractor ceases trading with 24 jobs lost
6 days ago

Hanson on track for UK’s first net zero cement works

20 carbon capture projects shortlisted for £1bn funding
4 days ago

Plan in for Nottingham 967-room student scheme

Vita submits plan for second major purpose built student sh
4 days ago

Galliford Try gets go-ahead for next A47 dualling job

Early 2023 start for £200m section of A47 between North Tuddenham and Easton in Norfolk
4 days ago

Designs revealed for £1bn London Blackfriars tower blocks

Fosters design landmark green office skyscraper and two blocks of flats for Southwark site
7 days ago

Everton stadium job still on budget despite inflation

Club and Laing O'Rourke confident they can still build new ground for £500m
7 days ago

Construction output falls 1.4% halting 7-month growth spurt

Fresh output and orders figures confirm summer construction slowdown
7 days ago

Contractor services