Chancellor has ignored housebuilding industry’s potential to boost the economy says NHF

The chancellor has missed a trick by “ignoring” the potential of the housebuilding industry to boost the economy says National Housing Federation chief executive David Orr.

In reponse to George Osborne’s announcement that the Government is ploughing money into infrastructure projects and building schemes in a bid to create jobs Orr said: “It has largely ignored the one industry which would provide the Treasury with the biggest bang for the taxpayers’ buck: house-building.

“A public investment of £ 1billion - matched by £8 billion from housing associations - would build 66,000 shared ownership homes for people on low to middle incomes, create 400,000 jobs and in doing so save the taxpayer £700 million in job seeker's allowance not to mention the added savings from housing benefit and increased tax revenues.

“Building affordable housing is a win/win for the taxpayer. Not only does it provide homes for people stuck on waiting lists at the lowest cost to the public purse but it also creates jobs, supports small businesses and gives the economy a quick shot in the arm with a speed and effectiveness no other industry can match.”

He went on to say that the Chancellor’s National Loan Guarantee Scheme, which will underwrite loans for small and medium businesses, “could be good news for some housing associations but the extent to which they will benefit will be dependent on the detail of the scheme” and said he was pleased to see that the Government will introduce a VAT exemption for services shared between VAT exempt bodies. “This has the potential to provide very significant cost savings to the housing association sector and is an issue the Federation has lobbied on,” said Orr.

He added: “Plans to introduce a 13-week maximum timescale for the majority of non-planning consents, which cover applications for situations like temporary road closures, will speed up the overall planning process and will be welcomed by developers.”