The UK’s biggest business leaders want the Chancellor to use his next Budget to give a big boost for housing.
The Confederation of British Industry wants to see an extra 50,000 affordable homes, new measures to help first and second-time buyers and VAT cuts to help householders refurbishing homes.
Leaders also want help for smaller house builders which are struggling to access finance.
John Cridland, CBI Director-General, said: “With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms – unleashing pent-up demand, while creating jobs and growth.
“We must also supercharge the NewBuy scheme to help second-time buyers struggling to get on the next rung of the property ladder.
The CBI is also calling on the Government to bring forward its road spending and repair programme, as well as strengthening support for exporters and for smaller firms struggling to access finance.
The CBI wants to see:
Funding for a further 50,000 affordable homes by injecting £1.25bn of capital investment through the Affordable Homes Programme.
VAT cuts or subsidies on renovation and repair work to encourage refurbishment of existing houses. This could create 80,000 jobs at a cost of no more than £500m, and would bring empty homes back into use.
The acceleration of public sector land release for new housing on “build now, pay later” terms by moving all responsibility to the Homes and Communities Agency
A review of measures to increase institutional investment to encourage pension funds to invest in housing
The expansion of the NewBuy mortgage guarantee scheme to those with limited or negative equity looking to step-up to their second home. This would make more properties available for first-time buyers
The introduction of a housing deposit ISA to encourage saving. Combined with proactive marketing of the FirstBuy and NewBuy Government schemes, this would help overcome the perception among first-time buyers that they are unable to get a foot on the housing ladder
An extension of the housing guarantee scheme to cover all housing tenures to support smaller house builders access finance.