The UK’s housing crisis is causing British business to miss out on £13.3 billion of growth per year, according to a report by Arcadis, which has called for a “radical shift” in the way the country builds, buys and rents its homes.
The report, Building Homes – Making Places, reveals that each newly built home could contribute £53,000 to the nation’s business community.
Arcadis explained that boosting housing supply could help to lower the premium bosses needed to pay for efficient labour market allocation, freeing up as much as £21,000 to be reinvested back into the business, allowing the opportunity to improve competitiveness.
“Of this sum, £3,000 alone comes from funds that would previously have been diverted towards housing subsidies for those living in areas where the cost of living comes at a premium,” Arcadis added.
Further, bringing more residents into the area would see another £32,000 per home created yearly through local spending being recycled through the economy, the organisation explained.
Credit: Arcadis