Home building has contributed over £50bn to local economies across England and Wales in 2023-2024, according to new research by the Home Builders Federation (HBF).
Ahead of New Homes Week (3 to 9 February), a series of regional reports have today been published, examining the role of home building in supporting local economies, improving communities, and delivering essential infrastructure. Home builders deliver around 226,000 a year, providing a vital boost to local economies and generating billions in investments for crucial community projects.
The financial contributions of home builders extend beyond housing delivery. The research shows that in 2023-24, over £10bn was invested in affordable housing, £6.4bn was spent in local shops, and £1.4bn was allocated to infrastructure. This included more than £630m for new and improved schools and £200m for open spaces, as well as the creation of over 800,000 jobs across the country.
Looking regionally, we can see how this investment has materialised in local communities. The East of England saw 28,640 homes delivered, generating £6.3bn in economic activity and supporting 100,000 jobs. The East Midlands built 22,790 homes, contributing £5bn to local economies and creating nearly 5,000 school places. Similarly, the South East saw 38,760 homes built, generating £8.6bn in economic activity and supporting 135,000 jobs.
London, as the largest metropolitan area, delivered 32,160 homes last year. The delivery of these homes generated £1.5bn for affordable housing and a contribution of nearly £1bn in local spending.
Home building in the capital also led to the investment of £1bn in infrastructure, including over £90m for new schools, creating nearly 6,000 new school places. In total, house building in London generated £7bn in economic activity, supporting 110,000 jobs.
Despite the positive economic impacts, local communities lack awareness of the contributions home builders make to their economies and investment in community infrastructure. To help address this, HBF is considering how a ‘badging scheme’ similar to the blue plaque system could be introduced to allow the public to easily identify infrastructure and community facilities funded by developers.
Additionally, HBF is calling for strengthened financial resources for Local Authorities’ planning departments to better manage and monitor Section 106 contributions, which are vital for funding community projects, as well as greater transparency. Government should also consider introducing stronger guidance or legislation to ensure developers’ contributions are spent in line with their intended purpose.
Neil Jefferson, Chief Executive of the Home Builders Federation, said, “The home building industry is a driving force behind the UK’s economic growth and social infrastructure. Our research shows that home builders are not just creating new homes, but also delivering the vital infrastructure and community facilities that are essential for sustainable communities.
“As we continue to work towards Government’s housing targets, it is critical that we communicate the full extent of these contributions to the public, ensuring that local economies and communities reap the full benefits. The proposals we’ve put forward are designed to improve transparency, collaboration, and the long-term impact of these investments.”