New CEBR analysis for Babelfish finds 1.4m homes could be built on brownfield land, adding 0.9% to GDP a year for a decade. Half already have planning permission.
Change the lens on housing and the outlook is good
1.4m homes sit waiting on brownfield land. Building them would deliver £250bn, 400,000 jobs a year and £1.92 back for every £1 invested. The Big Five won't.
In this issue we expose the stranglehold of Britain's Big Five on our housing market. The massive land banks, the enormous number of consented homes and the snail-like pace of building that keeps house prices too high – and in short supply.
We also expose the massive opportunity we have to do something about it, using brownfield land – to break this stranglehold that does such great harm, socially and economically. And we make a suggestion: Labour should create a national house building champion, which may be on the cards anyway – to focus on the 1.4million homes we found on brownfield land, half of which already have planning permission – the other half of which will get it easily.
Our research shows the value of this, way beyond the obvious social value. A 10-year programme to build these 1.4m new homes will deliver a £250billion economic boost, create 400k full time jobs each year and return £1.92 to the country for every £1 of public money we invest. That's the kind of rate of return that venture capitalists get out of bed for, it's exceptional. Bond markets will understand it and the treasury has already set aside £100billion for investments just like this.
Andy's instincts and his ambition are right – and our numbers back him, showing this isn't just doing social good, it's hardcore economic good. Britain's housing crisis is a massive problem, both social and economic – but like all problems, change the lens and it's an opportunity. Let's build the homes Britons badly need and give our economy the turbo charge it badly needs – in the process. And if our new PM does create a Department for Growth – this would fit into that perfectly. Growth and social benefit – hand in hand. Who knew? Labour has always known.
Other relevant stories
Survation polling for Babelfish finds more people back than oppose charging housebuilders council tax on consented land they haven't built on. 49% back brownfield.
New CEBR research for Babelfish: 1.4m brownfield homes would unleash £259bn and return £1.92 for every £1 spent. The big five sit on 869,000 plots instead.
Britain's big five sit on 869,000 plots worth £275bn and build slowly to keep prices high. Start the rates clock the day permission is granted.
Barratt Redrow, Taylor Wimpey, Persimmon, Vistry and Bellway hold 869,000 plots between them. Taylor Wimpey's landbank alone would take 19.5 years to build out.