Government urged to kick-start radical house building programme


The next British government should commit to a large-scale house-building programme in order to avoid a very serious housing crisis, a report by KPMG and Shelter has argued.

The report points out that the UK, as a country, it is building just less than half of the 250,000 new homes a year needed to keep up with demand.

New research estimates that average house prices would be more than £900,000 by 2034 if current trends continue – a quadrupling of current prices. The research also shows more and more people will be priced out of a home of their own as housing costs soar – a trend that could see more than half of 20 to 34-year-olds living with their parents by 2040.

The paper supplies some very important pointers regarding what the 2015 government should do in order to turn the tide on the nation’s housing shortage within a single parliament. The paper suggests that key measures should include releasing infrastructure spending to unlock stalled house-building sites, setting up a ‘Help to Build’ scheme, using government guarantees to help small builders access the market, as well as introducing a new National Housing Investment Bank to finance affordable house building.

Another useful measures would be to put housing at the centre of City Deals, giving towns and cities the power to build the homes their communities need.

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