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Each new home creates £316,000 financial ripple for the UK

Each and every home built in the UK has the potential to generate over £316,000 in wider benefits for the economy, UK businesses and local people. These financial benefits are much broader than most have previously understood, with each new home creating multiple jobs and generating significant wealth for the surrounding area.

Peter Hogg

City Executive, London Ask me a question

“The next ten-to-fifteen years could see a housing boom the likes of which have not been seen in over a century.”

Building just one new home generates £250,000 of wider benefits through job creation and tax. On top of this, in excess of £53,000 is generated for businesses thanks to the lowering of wage premiums and money spent in the local area. Finally, more than £12,000 goes back to the local community, with developers investing in roads, leisure facilities and additional affordable housing.



Realising these financial benefits is more important than ever, particularly as Britain heads into Brexit negotiations and concerns persist over the UK’s sustained economic performance. 

As we get closer to officially exiting the European Union, it will become increasingly important for British cities to compete with their international counterparts to attract investment, labour and skills. This can only be achieved through effective placemaking, with housing one of the most important components.

A radical shift in approach

However, in order to develop more housing there needs to be a radical shift in the way the nation builds, rents and buys its homes. The answer to the UK’s housing crisis lies in providing truly flexible housing tenures at every level of affordability. In order to meet the requirements of modern living, a single development needs to include multiple options to buy, take shared-ownership, or short- and long-term lease arrangements. 

A new approach where homes and tenancies are both secure as well as flexible would prove an attractive proposition to big businesses and investors, helping to put the UK ahead of the competition when it comes to a skilled, mobile workforce.  

The British government and devolved administrations will also need to start building homes. The use of statutory powers to allow developers to build and upgrade property in central areas with easy access to employment, transport and amenities, as well as tax incentives and a public sector procurement drive could create a ripple effect. If progressed at the same time as sponsored investment in offsite construction methods, this could make a genuine difference to the number of homes of different tenures in our key cities.

Questions about this article

Peter Hogg

City Executive, London Ask me a question

Arcadis White paper

Building homes - Making places

Each and every home built in the UK has the potential to generate over £316,000 in wider benefits for the economy, UK businesses and local people. These financial benefits are much broader than most have previously understood, with each new home creating multiple jobs and generating significant wealth for the surrounding area.

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