Research has suggested that England’s housing market could be boosted by £161.6 billion if the Labour government honours it’s commitment to deliver 370,000 new homes each year.
London lettings and estate agent Benham and Reeves claims that housing delivery would be propelled by 22 per cent and the housing market would significantly increase in value.
The estate agent’s research shows that the proposed increase in new homes delivered from 305,223 per year to 371,541 would boost housing supply by 21 per cent.
Over the last five years, the average new-build home has increased by an average of three and a half per cent per year in value.
The North East is set to see the largest boost to housing stock should “Labour come good on its promise”, with the proposed method estimated to increase the level of new homes reaching the market by 99 per cent.
However, London is the only region expected to see a reduction in new housing delivery under new proposals, with the number of new homes built each year forecast to fall by 18 per cent.
Despite this reduction, London is still expected to see by far the most value added to the property market via the construction of new homes, with an estimated boost of £46bn over the next five years.
Redcar and Cleveland is the local authority set to see the biggest boost to housing stock under Labour’s new housing delivery proposal. The area is set to see the level of new homes climb to 642 per year – an increase of 1,338 per cent versus the 45 per year delivered via the current method.
When it comes to the highest market value of potential new stock delivered over the next five years, Kensington and Chelsea sits top. Not only is the borough set to see a 209 per cent increase in the number of new homes delivered each year under new proposals, but over five years, this new housing stock is estimated to bring an additional £5.1bn in added value.
