Government has made recent steps to signal it is taking the housing crisis seriously. But to turn things around, it needs to go much further.
In the last autumn statement the Chancellor announced an additional £1.4 billion for the delivery of new affordable homes. Whilst this is a welcome sign, much more investment is needed to build the country’s 300,000 homes a year, 65000 in London alone.
Our ‘Hard Choices’ report with Volterra has calculated how much the Government needs to spend to deliver the target 300,000 new homes a year in England.
The report estimates £68 billion is needed from both private and public sector investment, which means an extra £20bn (or 40% more) from Government than was spent the previous year. The funding gap is even more acute in London, which needs £8.6bn, an increase of 65% to deliver 66,000 new homes a year.