‘The Economic Footprint of Home Building’ has revealed that home building in England and Wales generated £53.3bn in economic output in 2023, and supported an estimated 834,000 jobs.
The research, conducted by Lichfields for the Home Builders Federation (HBF) and produced in association with UTB, found that delivering 240,000 homes provided £6.4bn in revenue for the Government, £9.2bn for new affordable housing, £1.5bn for infrastructure, and £16.6bn spent in the construction supply chain.
The report also noted a £216m investment in open spaces and community facilities, leading to the support of 10,000 apprentices and trainees.
If the Government meets its target of 1.5 million homes, the report found that this could generate £330bn in economic activity and create an additional 350,000 jobs each year.
This included significant contributions of £57.5bn for affordable housing, £42.5bn in local shop spending, and £9.4bn in infrastructure funding.
Neil Jefferson, chief executive of the HBF, said: “As well as addressing some of the major social issues the country faces, building more homes drives economic activity.
“The house building industry sustains hundreds of thousands of jobs, generates huge receipts for the exchequer and boosts investment in infrastructure and amenities across the country.
“Delivering new developments provides energy-efficient, modern homes, and ploughs investment into new roads, schools and community facilities that benefit both new and existing residents.
Jefferson added: “If Government can deliver on its ambitious housing targets it will reap significant social and economic benefits.
“The industry welcomes the swift and decisive actions to address the constraints in the planning system, but more is needed to accelerate growth.
“The lack of affordable mortgage availability means more support for buyers is needed.
“Creating demand for new homes provides the confidence the industry needs to invest and deliver both private and affordable homes.
“The upcoming budget provides an opportunity for the Government to take more positive steps to address the mounting housing crisis and to commit to their pledge to get Britain building again.”
Adam Bovingdon, head of property development at United Trust Bank, said: “This important report illustrates the huge contribution the housing industry makes to the UK economy and to the local areas surrounding new housing developments.
“UTB is a staunch advocate for regional housebuilders and entrepreneurial developers and the important contribution they make to delivering the UK’s housing needs.
“Our funding supports the completion of around 5600 new homes at any one time, bringing new jobs, new facilities and new money to areas where investment can make a big difference.”
Richard Coburn, senior director at Lichfields, said: “We were delighted to be asked by the HBF to update our series of economic impact work which we started in 2015.
“Our research lands at an extremely important time for the house building industry with the new Government seemingly taking all reasonable policy measures to accelerate much-needed delivery of new homes.
“Lichfields again has identified the very significant economic contribution made by house building and how boosting supply to achieve the Government’s confirmed aspiration of 300K homes per annum in England will not only help improve access to housing for people across the country but also deliver a significant economic and infrastructure dividend.
“It is important that this contribution is properly recognised in planning and investment decisions across central and local government.”
