Property body urges next government to up investment to boost affordable homes

A group of some of the UK’s biggest construction companies has called on the next government to pour up to an extra £14 billion into affordable homes to ensure 145,000 are built every year.

The British Property Federation (BPF) has called on whoever wins the next election to also ensure that around 30,000 build-to-rent properties are constructed around the country.

Melanie Leech, the group’s chief executive, said: “This year’s election comes at a critical time. The next government must not only set out a compelling vision for the future but will need to persuade the electorate that it can deliver.”

If the government works with industry it could unlock billions of pounds of investment from property companies, the BPF said as it unveiled its manifesto ahead of the election.

We need to invest billions of pounds in our infrastructure, our housing is of insufficient quantity and quality, and town centres across the UK need reinvention

It said that £10 billion of new private capital could be unlocked if the government increased subsidies for affordable housing by £9-£14 billion, adding that this could help deliver 145,000 new affordable homes every year.

“As a country, we need to stimulate economic growth and become more productive,” Ms Leech said.

“We need to invest billions of pounds in our infrastructure, our housing is of insufficient quantity and quality, and town centres across the UK need reinvention.

“Looming over these issues is the existential challenge facing all of us – the need to decarbonise our society.”

The country is going to go to the polls some time this year, or maybe in January 2025, if the Prime Minister holds out until the very latest possible point.

The BPF asked for government action in other areas, including building stronger town centres and trying to help developers erect greener buildings.

It should include more resources for local planning officers, and a central planning system which helps local and regional authorities with massive projects, it added.

The group also asked for reform to the business rates system – the business equivalent of council tax.

A Department for Levelling Up, Housing & Communities spokesperson said: “We need to build more affordable homes and that is why we continue to invest in our £11.5 billion Affordable Homes Programme, delivering tens of thousands of homes to buy and rent across the country.

“The Secretary of State recently set out new measures to speed up the planning system and we remain on track to deliver one million homes over this Parliament.

“Our long-term plan for housing will allow us to go even further, backed by £10 billion investment to boost supply and build the homes that local communities want and need.”