Construction firms demand £14bn to build 145,000 affordable homes a year

29 January 2024 , 09:48

1003     0

Building firms want the next government to pour billions of pounds into affordable homes (Image: PA Archive/PA Images)

The British Property Federation (BPF), a group of the UK's biggest construction companies, has urged the next government to invest an extra £14 billion into affordable homes.

They believe this could ensure 145,000 are built every year. The BPF also wants the next government to make sure around 30,000 build-to-rent properties are constructed across the country. Melanie Leech, the group's chief executive, said: "This year's election comes at a critical time.

"The next government must not only set out a compelling vision for the future but will need to persuade the electorate that it can deliver." The BPF believes that if the government works with the industry, it could unlock billions of pounds of investment from property companies.

They suggest that £10 billion of new private capital could be unlocked if the government increased subsidies for affordable housing by £9-£14 billion. This could help deliver 145,000 new affordable homes every year. Ms Leech added: "As a country, we need to stimulate economic growth and become more productive.

She added: "We need to invest billions of pounds in our infrastructure, our housing is of insufficient quantity and quality, and town centres across the UK need reinvention. Looming over these issues is the existential challenge facing all of us the need to decarbonise our society."

Teachers, civil servants and train drivers walk out in biggest strike in decade

The country might have an election this year or in January 2025 if the Prime Minister waits until the last possible moment. The BPF has called on the government to take action in several areas, such as making town centres stronger and helping developers build greener buildings. They want more support for local planning officers and a central system that helps with big projects.

They also want changes to the business rates system, which is like council tax for businesses. A spokesperson from the Department for Levelling Up, Housing & Communities said: "We need to build more affordable homes and that is why we continue to invest in our £11.5 billion Affordable Homes Programme, delivering tens of thousands of homes to buy and rent across the country."

"The Secretary of State recently set out new measures to speed up the planning system and we remain on track to deliver one million homes over this Parliament. Our long-term plan for housing will allow us to go even further, backed by £10 billion investment to boost supply and build the homes that local communities want and need."

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson