Good to see Savills on the 'Case'

Some wise words from Savills this week as they put forward a very convincing case for an increase in  the build targets for the new homes industry.  According to their paper “A Case for Housing” an extra £23bn would be put into Government coffers over the life of the next parliament by simply building an extra 100000 new homes per year.

Regular readers of my blog will know that we as a company are predicting a housing shortage by 2020 so we welcome any moves to address this – but what Savills have done here is fascinating for many reasons.

Firstly it is easy for the general public (and politicians) to forget that the new homes industry is just that – an industry.  We hear a lot about the automotive sector the manufacturing sector and yes – the public sector but we are an industry too – and an extremely important one at that.

Secondly according to Savills by doubling the new homes supply we could create an extra 500000 jobs which would in turn save The Chancellor £1.1 billion per annum in benefits payments alone.  Added to that the country’s coffers would be £5.8billion richer by 2015 thanks to the subsequent annual tax boosts created by these jobs.  This is before we even add revenue from stamp duty into the mix.

Thirdly Savills raise some key issues for Brown (or Cameron) to mull over.  We know that the demand for new homes is there.  Our visitor levels show that.  The issue is still the banks as buyers continue to be hampered by the reduced mortgage supply situation. It is rather ironic that the industry that got us into this mess is continuing to perpetuate it.

If I was Chancellor of the Exchequer and had six years to clear a debt of £180bn – I would take this report very seriously indeed which is why it is good to see Savills on the “case”.

Sue Warwick National Sales & Marketing Director - Miller Homes