New report reveals the huge social and economic impact of the housebuilding industry
A new report has revealed the full extent of the contribution the housebuilding industry makes to the UK’s economy and its communities.
The research by the Home Builders Federation (HBF) shows the industry is worth £19.2bn per year to the UK economy and is responsible for more than 600,000 jobs, generating £1.4bn in tax revenues – as well as the additional community benefits derived from building new homes.
The key numbers
- 600,000 jobs created
- £19.2bn economic benefit
- £5.5bn supplier spend, 90% of which stays in the UK
- £1.4bn generated per year in tax revenues
- 32,000 afforable homes – worth £2.3bn – built or financed by private house building with a further £1bn paid to local authorities as a contribution to more affordable housing
- £576m spent on community facilities including:
- £225m towards education facilities alone - enough to fund 52,000 classroom places;
- £131m in open spaces and community and sports facilities.
- £3.8bn spent in local shops and services
Other benefits include:
- 6.5m trees and shrubs planted
- 80% of waste is recycled
If we built 100,000 more new homes a year, we would generate...
- 430,000 extra jobs
- £11.9bn extra in economic output
- 20,000+ affordable homes
- £2.7bn for additional community benefits, including affordable homes, education, health and open spaces
- £1bn+ in additional tax revenue, including £128m for local authorities in the form of council tax to fund improved local services
Stewart Baseley, executive chairman of the HBF, said:
“Housebuilding makes a huge and largely hidden social and economic contribution to the UK. Whilst housing output has increased, we are still not delivering anywhere near what is needed. As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits. House building is a huge employer both directly and through supplier companies.
“As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to communities across the land. People often don’t realise that the new community centre or school or football pitch has been paid for as a direct results of new homes. Providing new homes for people also means better facilities for the wider community. These are the very things that turn a collection of houses into communities; brand new places where people want to live.