More new city homes needed

18 March 2010

More new homes need to be built in cities across the UK, particuarly the south of England, according to a new report.

Arrested Development: Are we building houses in the right places?, a report published by think-tank Centre for Cities claims that economic growth in the UK is being hindered by a lack of new build homes coming onto the market.

The study ascertains that the greatest need for new homes is in the UK's least affordable cities, where micro economies are greatest - namely London, Brighton and Cambridge.

The report points to the fact that these cities possess the largest workforces and a high number of graduates, suggesting that they are in a prime position to lead the economic recovery in this country. But the report warns that unaffordable home prices could adversely affect their economic growth.

The report recommends that the national brownfield target is scrapped and responsibility for the protection of greenbelt is handed to councils. It also wants various incentives introduced for local authorities who want to construct more new build homes.

The report states that Labour's housing targets have had limited success, while the Conservatives council tax matching initiative is unlikely to be any better.

Dermot Finch, chief executive for the Centre for Cities, said: "Over the next decade, local authorities will need new incentives to build houses where they are needed. This also means a fresh look at the greenbelt - it's a myth that the entire green belt is picture-postcard rural idyll."

He added: "A very small slice of it could be used for housing."

Marc Da-Silva, editor of What House? says: "A major Labour donor is expected to issue a statement tomorrow, in response to the Conservatives housing policy. It doesn't take Einstein to workout what their views are. It looks like Labour's spin machine is working well.

"However, Labour has failed miserably in their attempts to build more new build homes, while Conservative policies look rather suspect, and could end up costing us more money in council taxes."