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20/01/2016

House building surge creates 100,000 jobs - report

Words: Laura Edgar
Housing / iStock_000002477215

Last year, more than 100,000 jobs were created in England owing to the increase in house building, says a report released today (20 January).

The report, Building Communities, Boosting Employment (pdf), suggests that the house building industry is now supporting about 667,000 jobs.

The study, produced by the Home Builders Federation (HBF), also highlights:

  • 10,000 jobs are estimated to have been created in London in 2015, with the capital now supporting 100,000 jobs in house building;

  • Development in Greater Manchester supported the creation of more than 5,000 jobs. Essex created a similar number of jobs;

  • Outside of London, the West Midlands supported the most jobs – 27,907; and

  • Proportionally, new house building activity in Warwickshire, North Yorkshire and Oxfordshire saw the sector create 40-50 per cent more employment.

House building rates have, said HBF, “rocketed” over the past few years, with planning system improvements and the Help to Buy Equity Loan scheme helping house builders to increase output by around a third in just two years. HBF cited government figures showing that there were 170,690 net additions to the housing stock during 2014/15.

Stewart Baseley, executive chairman of the HBF, said: “The house building industry has increased its output at the steepest rate for decades. Delivering the high-quality homes we desperately need is also providing a huge boost to economies across the country. The industry is recruiting and training tens of thousands of new people to ensure it can continue to deliver significant sustainable increases in supply and provide the high-quality homes the country needs.”

Stephen Stone, chief executive of housebuilder Crest Nicholson, welcomed HBF’s findings: “ It’s a great time to work in this industry, especially given the government’s recent commitment to build 400,000 new homes.”

However, Stone warned that to “support the growth of the sector, it’s vital that our industry as a whole works to address the skills shortage that seems set to challenge us all over the coming years”.

Building Communities, Boosting Employment can be found here (pdf).

Image credit | iStock

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