Improve UK Economy? Just Build More Homes!

Last week Barack Obama unveiled his plan to kick start America’s economy by investing $300 billion (£190 billion) in a bid to revive America’s unemployment crisis.

Many think America leads the world and others follow so could we see a ripple effect here in the UK?

David Orr, Chief Executive of the National Housing Federation asks: Is the answer to improving the UK economy simply to build more homes?

In 2010 only 105,000 new houses were built, the lowest since the 1920’s and yet there are not enough properties in the UK to meet the growing UK population. There are plenty of buyers out there that can’t find homes and house price affordability apparently the best it’s been in 12 years (Halifax) – so why aren’t we building more homes?

There has been some criticism that those who are buying property already own a home and are seeking additional dwellings as investment properties to capitalise on those un-able to afford their own home at present therefore reducing the number of affordable homes available to those in a position to buy.

Housing and planning minister Grant Shapps commented in a recent BBC Radio 4 interview that the Governement were doing all they can to increase the amount of housing in England, with measures such as;

- Releasing government land
- A billion pound ‘New Homes Bonus’ scheme
- Reforming the planning system
- First Buy scheme
- Lower interest rates

However he could neither deny nor confirm any plans to significantly increase the number of new homes being built.

So, if the answer is to build more homes, the next question is – where? With many communities heavily opposing plans to develop housing on ‘Greenfield’ land where does the compromise between building more housing to meet supply and demand and conserving Greenfields lie?

Let Arc Property Solicitors know what you think!