Ahead of General Election, CBI Calls For All Political Parties to Commit To 10 New Towns
Within the CBI’s manifesto published today there is a call for all political parties to commit to an increasing drive to build more homes, ahead of next year’s general election, in order to deliver the country’s 240,000 homes a year target.
It’s estimated that the housing shortage is currently costing people in the Uk around £4bn extra each year in additional housing and transport costs and in an effort to get to grips with it, the CBI is calling for 10 new towns and garden cities to be built as well as reforms to Stamp Duty and help for small to medium sized house builders to find finance for schemes.
Of the £4bn being taken out of consumers’ pockets each year, £770m is being spent on transport-related costs and is preventing many young people from getting on the housing ladder in the first place.
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.”
There are already a number of new towns being built or at proposal stages, including development such as Northstowe, however as the CBI report points out more need to be decided on. With the UK government considering the HS3 railway development between Manchester and Leeds it’s a shame that no one has seriously taken up the arguments new commuter town to be located somewhere off Junction 22 of the M62.
Of the 240,000 new homes that need to be delivered each year, only 4 years out of the last 14 years has seen more than 200,000 new homes being built whilst in 2010 fewer houses were built than any other years since the Second World War.
With huge increases in house price inflation taking place the CBI is leading the calls for all political parties in the UK to commit in their manifestos to major infrastructure reforms and building programs.