Housing Explosion Could Mean Big Employment Numbers
The well-known Centre for Economics and Business Research (CEBR) has spoken about what a possible housing boom could do, not only for meeting a growing housing demand, but improving employment numbers for years to come. The body believes if government housing restrictions were eased, a housing boom in the UK could potentially create more than 200,000 jobs. The CEBR has recently conducted a study which reveals a housing explosion could take place with a change in housing policies which currently control housing market supply.
Almost 100,000 homes were built last year. This number could be much higher according to the CEBR. According to the think tank, the number could be closer to 300,000 per year by 2015. The CEBR believes simply overlooking the impact of a housing boom is the reason for a restrictive set of policies which are now in existence.
Shehan Mohamed, of CEBR, commented on the possibilities in the housing market if policies were reformed, saying: “With fiscal and monetary policy measures exhausted, the government should consider how scaling back regulation can help bolster growth. One such measure is an easing of planning laws which would help create thousands of new jobs in construction.”
The CEBR also believes rents could fall be more than 10% with an increased supply in housing by the year 2015. The housing explosion could represent a time similar to that of the 1930’s housing boom, which enabled the UK and the US to see impressive economic growth in a short amount of time.