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Call for thousands more UK homes Call for thousands more UK homes
(about 3 hours later)
The government is being urged to build the country out of recession with a major programme of house construction.The government is being urged to build the country out of recession with a major programme of house construction.
The newly formed 2020 Group of building bodies, councils and unions says there is a need for 100,000 new affordable homes to rent over the next two years.The newly formed 2020 Group of building bodies, councils and unions says there is a need for 100,000 new affordable homes to rent over the next two years.
The group says providing new social housing, as well as meeting an "urgent" demand, will save construction jobs and support other related industries. The group says providing new social housing will save construction jobs and support other related industries, as well as meeting an "urgent" demand.
It also warns the building slump risks "sowing the seeds of the next boom". The recession has meant a collapse in house prices, lending and construction.
The recent sharp rise in repossessions is putting extra pressure on councils, with the number of people on housing waiting lists in England set to reach five million by the end of next year. Social housing waiting lists are rising. This package meets a real and urgent need Kate Barker2020 Group chairwoman The recent sharp rise in repossessions is putting extra pressure on councils, with the number of people on housing waiting lists in England set to reach five million by the end of next year. This is a one-off chance for the government to stimulate the economy and help meet housing need in one fell swoop David OrrNHF chief executive
The 2020 Group also estimates there will be 450,000 job losses in the construction industry between 2008 and 2010.The 2020 Group also estimates there will be 450,000 job losses in the construction industry between 2008 and 2010.
But it says with many construction sites already identified, a government cash injection could see building start within months. But, it says, with many construction sites already identified, a government cash injection could see building start within months - it wants an extra £6bn in government money.
Group chairwoman Kate Barker, a member of the Bank of England's monetary policy committee, said house building offered "excellent value in terms of sustaining economic activity" and was "urgently needed".Group chairwoman Kate Barker, a member of the Bank of England's monetary policy committee, said house building offered "excellent value in terms of sustaining economic activity" and was "urgently needed".
"There is real concern that the present fall in home building is sowing the seeds of the next boom," she said.
'One-off chance''One-off chance'
Chief executive of the National Housing Federation David Orr said a mass house-building programme "could kick-start the economy, save jobs, and deliver new homes for more than 200,000 people".Chief executive of the National Housing Federation David Orr said a mass house-building programme "could kick-start the economy, save jobs, and deliver new homes for more than 200,000 people".
"This is a one-off chance for the government to stimulate the economy and help meet housing need in one fell swoop," he said."This is a one-off chance for the government to stimulate the economy and help meet housing need in one fell swoop," he said.
The 2020 Group says its recommendations would:The 2020 Group says its recommendations would:
  • Save 30,000 jobs in the industry, as well as thousands which support the industry, including in building materials, furniture and white goods
  • Preserve construction jobs and apprenticeships which would help prevent a loss of key skills
  • Enable house builders to continue to invest in housing supply and reduce the risk of a housing supply shortage once the economy recovers
  • Improve cash-flow and reduce risk for developers and suppliers currently experiencing severe financial pressure
  • Increase labour market mobility by providing more affordable and social housing
  • Save 30,000 jobs in the industry, as well as thousands which support the industry, including in building materials, furniture and white goods
  • Preserve construction jobs and apprenticeships which would help prevent a loss of key skills
  • Enable house builders to continue to invest in housing supply and reduce the risk of a housing supply shortage once the economy recovers
  • Improve cash-flow and reduce risk for developers and suppliers currently experiencing severe financial pressure
  • Increase labour market mobility by providing more affordable and social housing
The 2020 Group also argues that government would profit from the investment as the creation of jobs would lead to increased revenue from taxation.
Brendan Barber, TUC General Secretary, said: "When such investment can ensure such an important sector as construction retain jobs, capacity and its skills base, the case for a significant boost in the budget becomes overwhelming."
Adam Sampson, chief executive of housing charity Shelter, backed the calls for a major building programme and said more homes would also help thousands of people currently living in poor housing.Adam Sampson, chief executive of housing charity Shelter, backed the calls for a major building programme and said more homes would also help thousands of people currently living in poor housing.
Margaret Eaton, chairwoman of the Local Government Authority, said thousands more people were now looking to councils to provide them with a permanent home because of rising repossessions and the difficulties of getting a mortgage. Margaret Eaton, chairwoman of the Local Government Authority, said: "Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder."
She added: "Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder." The 2020 Group is made up of the National Housing Federation (NHF), housing charity Shelter, the Local Government Association (LGA) and the Trades Union Congress (TUC).
BBC local government correspondent John Andrew said the government was consulting on plans to let councils start building again, but it was housing associations which would be best-placed to begin construction quickly.BBC local government correspondent John Andrew said the government was consulting on plans to let councils start building again, but it was housing associations which would be best-placed to begin construction quickly.
On Friday a group of Labour party members urged a similar move.
Progress called on the government to spend an extra £20bn to stimulate the economy through measures to boost the housing market.
It also wants a stamp duty freeze on houses valued under £1m for the rest of the year and the offer of a £1,000 tax credit to home buyers.