Building 100,000 homes each year could add £17.7bn to the economy

Policy Exchange says that building 100,000 homes each year could add £17.7bn to the economy. The think-tank warned the shortage of new homes and over-inflated house prices are diverting investment from other areas of the economy, harming productivity and reducing consumer demand by eating into household income. It also recommended the Government give businesses a clear idea of what sort of development will secure planning permission. Report author Dr James Vitali said: "The potential rewards for unlocking the housing market, however, are huge: a more mobile labour force, more productive cities, more investment in productive businesses, a reduced benefit bill and renewed faith in the galvanising ideal of home ownership."  Former housing minister Brandon Lewis, who backed the research, said: "Solving the crisis holds out the dual prospect of placing rocket boosters under our economy and selling a new generation on the 'British dream' of home ownership." 

Daily Express (22/02/2023)