Study reveals true benefits housebuilding can bring

Housing: coun John Swindells
Housing: coun John Swindells
Share this article
0
Have your say

The huge multi-million-pound benefit that housebuilding brings to Lancashire is revealed today for the first time in a wide-ranging report.

A new study by the Home Builders Federation has revealed the full extent of the community and economic benefits of house building to the county and the North West.

Housing: a housing chart

Housing: a housing chart

But the region is still not building enough homes to meet its needs, the Federation says.

Today Preston Council chiefs said the authority was ideally placed for a boom in housing in the coming years.

Last year in Lancashire a total of 3,450 new homes were started - but the Federation says that’s only around three quarters of the area’s needs, meaning lost revenue and other spin-offs.

But in the North West in 2014, only 14,130 new homes were started by private house builders, the public sector and housing associations, compared to a projected annual need of 18,465 meaning that only three quarters of the amount of homes the area needed were being built.

Stewart Baseley, executive chairman at HBF, said: “House building makes a huge, but largely hidden, social and economic contribution to the cities, towns and villages of the North West.

“Whilst housing output in the region has increased, we are still not delivering anywhere near what is needed. As well as delivering desperately needed new homes, increasing housing supply would provide significant additional benefits for everyone living in the region through additional jobs, investment in infrastructure and facilities for communities.

“People often don’t realise that the new community centre, school or sports facilities have been funded directly as a result of housing developments.

“Ultimately, 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.”

Preston Council Deputy Leader Coun John Swindells commented: “Preston is a bright spot in the Lancashire and North West economy with many housing schemes started and many others set to get underway through our ambitious City Deal programme.

“This will deliver 17,000 new homes across Preston, South Ribble and Lancashire over the next 10 years.

“As a city, Preston has just adopted our Local Plan, which sets out a clear way forward for the development of new homes year on year. The economic benefits are clear and by working together with Lancashire County Council and our other partners, developers, house builders and local communities, we can enable Preston to thrive and achieve its true potential.”

In Lancashire, housebuilding is responsible for:

• 14,835 jobs;

• 138 graduates and apprentices positions;

• 148,350 new trees or shrubs;

• £5,544,150 towards education in the area;

• £4,436,700 in extra council tax revenue;

• £34,500,000 in other tax contributions;

• £3,229,200 towards new open spaces, community spaces or sports facilities, or enhancing existing resources;

• 794 new affordable 
homes;

• Payments of £76,393,350 to local authorities for further provision of new affordable homes.

In Preston:

In Preston house building was responsible for

• 200 new homes;

• 860 jobs;

• 8 graduates and apprentices positions;

• 8,600 new trees or shrubs;

• £321,400 towards education in the area;

• £257,200 in extra council tax revenue;

• £2,000,000 in other tax contributions;

• £187,200 towards new open spaces, community spaces or sports facilities, or enhancing existing resources;

• 46 new affordable homes • Payments of £4,428,600 to local authorities for further provision of new affordable homes;

InThe Ribble Valley:

In the Ribble Valley house building is said to be responsible for:

• 1,806 jobs

• 17 graduates and apprentices positions

• 18,060 new trees or shrubs

• £674,940 towards education in the area

• £540,120 in extra council tax revenue • £4,200,000 in other tax contributions

• £393,120 towards 
new open spaces, community spaces or sports facilities, or enhancing existing resources

• 97 new affordable 
homes

• Payments of £9,300,060 to local authorities for further provision of new affordable homes.

Housing factfile

ades, housing completions in the UK have not been keeping pace with estimates of housing need and demand.

In 2004, the Barker Review of Housing Supply found that to increase affordability by freezing the real terms increase in house prices would require an additional 240,000 homes per annum across the UK.

In the decade to 2014 the shortfall in housing grew by another one million homes.

The global credit crunch meant potential purchasers were unable to buy homes.

• The Home Builders Federation report also shows the variance in house prices across the region.

House prices in the North West of England have risen by 5.4 per cent over the last two years according to the Land Registry.

But they remain 17 per cent below their 2007/08 peak.

However, the performance of markets within a region can vary substantially.

House prices in Blackpool are 31 per cent down on their peak.

In Trafford are they are four per cent higher.

• The Federation says there is an estimated shortfall of 4,345 homes every year in the North West.

If the region was to meet this need, the knock-on economic benefits could be:

18,685 extra jobs

174 graduates and apprentices positions created;

186,848 trees and shrubs

£6,982,897 for education £5,588,056 in extra council tax revenue;

£43,453,000 in extra tax contributions;

£4,067,201 for open spaces, community, sport and leisure facilities