There is a “perfect storm” brewing in the housing market, the Confederation of British Industry has warned today.
It said the UK’s “chronic” housing shortage is costing consumers £4 billion a year due to the impact of above-inflation house price rises.
Ahead of the political conference season CBI deputy general Katja Hall called for MPs to act. “With demographic changes and demand currently dramatically outstripping supply, now is the time for action.
“Political parties have all made the right noises on the need for more homes, but without serious action the ambition to own a home will become out of reach to ordinary people.”
The CBI is calling for the development of 10 new towns and garden cities by 2025, alongside incentives to help older people looking to downsize or families wanting to extend homes.
In response, David Orr, chief executive of the National Housing Federation pointed out: “Our housing crisis hasn’t crept up on us. It has been caused by successive governments failing to build enough homes for the last 25 years and ordinary people are now paying the price.
“We are calling on the next Government to commit to ending the housing crisis within a generation and to publish within a year of coming to office a long-term plan for how it will achieve this aim.”