The Economic Footprint of UK Housebuilding
Housebuilding plays an important role in the UK economy. From job creation and investment in local services to addressing our current chronic housing shortage, the new homes industry is a key driver of growth.
According to the Home Builders Federation, every £1 spent on housing puts £3 back into the economy. The housing industry is a major employer too, supporting 600,000 jobs directly and via the supply chain. £5.5bn is spent every year on suppliers, with 90% of that staying in the UK.
Housebuilding is a major industry in this country, contributing £19.2bn of economic output annually to the UK economy. £1.4 billion of tax is also paid every year through stamp duty land tax, corporation tax, NI, PAYE and homeowner council tax.
Private sector housing makes a substantial investment in local infrastructure, education and community facilities. Agreed with local authorities as part of the planning process, the industry contributes around £576m every year; much needed investment that otherwise would not be available. Every year, as an industry, we fund new schools, health centres, sport facilities, and improvements in roads and public transport. Hectares of public land is also reclaimed through the creation of green open spaces, play areas and the opening up of disused land.
Since 2010, additional funding has been made available to local councils through the New Homes Bonus. The scheme, introduced by the Coalition Government, supports the delivery of new homes by matching the council tax receipts from new homes for the first six years. The NHB allocations between 2011 and 2016 total £3.4 billion.