Employment boost in levelling up areas to worsen housing demand

Boost in employment across ‘levelling up’ areas will lead to a significant increase in demand for housing, with analysis from the Build Back Britain Commission projecting an annual shortfall of up to 67,000 homes across cities like Birmingham, Manchester, Bradford and Liverpool.

The first report from the Commission reveals that as many as 140,000 homes will be required every year over the next two decades, particularly in the North and Midlands.

The Building Back Britain Commissions is arguing for a ‘radical rethink’ of the future of planning for housing demand, with focus shifting away from London and the South East.

The research, authored by former Treasury economist Chris Walker, assumes that over the next 20 years employment levels will increase in areas the government has identified as most in need of levelling up and which currently have rates below the national average.

The report also argues for the creation of at least one ‘Construction Cluster’ in every region of the UK by 2030 to foster innovation and help train up workers in the latest methods of construction, with the first of these located in Leeds.

Terrie Alafat CBE, chair of the Building Back Britain Commission, said: ‘Our results have profound implications for policy. The Government’s current housing strategy simply does not fit the levelling up agenda. It is based on past growth trends and will not be dynamic enough to meet future demand. The increase in demand in levelling up areas should reduce the pressure for new homes in other areas that are already economically developed.’

Jason Millett, CEO for consultancy Mace, who are part of the Commission group, added: ‘The levelling up agenda cannot succeed if we don’t change how and where we build the homes we so desperately need. If we can unlock modern methods of housing delivery at scale, we can boost growth, create thousands of green jobs and address the causes of regional inequality that drive unequal outcomes across the UK. This timely report lays out a clear vision for how Government, housing providers and the private sector can work together to make that vision a reality.’

In related news, as many as 80% of people do not feel confident that Prime Minister Boris Johnson will succeed in levelling up the UK, according to a new report by HOPE not Hate Charitable Trust.

Photo by Greyson Joralemon