Housing market needs reform, says business group
09 Sep 2014
The Confederation of British Industry (CBI) has released a report showing that a lack of housing in the UK is costing consumers up to £4 billion in above-inflation housing costs.
Part of the CBI’s aim to keep the UK economy healthy and advise political parties ahead of conference season, the report shows that £3.2 billion in housing costs and £770 million in transport-related costs are incurred by consumers every year.
Katja Hall, Deputy Director-General of the CBI, said: ‘A perfect storm is brewing in the housing market. With demographic changes and demand currently dramatically outstripping supply, now is the time for action. Political parties of all colours have made the right noises on the need for more homes, but without serious action the ambition to own a home will become more and more out of reach to ordinary people.
‘We need a stronger response from politicians who must be ready to take bold decisions from building on low quality green belt land to overhauling Stamp Duty’.
The CBI has recommended the following key measures:
- The development of ten new towns and garden cities by 2025.
- Doubling the number of new homes currently built to 240,000 a year.
- Reforming Stamp Duty to end its distortive impact on the housing market.