HBF: Covid-19 sees 40,000 fewer homes built during Q2

The Home Builders Federation has highlighted the impact fewer homes being built will have on the wider community, as newly released figures reveal that, between March and June, this number was down by around 40,000.

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Property Reporter
18th September 2020
construction 7

Loss of community benefits as fewer homes built

A new report from HBF points to government figures which show that during Q2 38,700 fewer new homes were built than in the same period last year – 30,394 compared to Q2 2019’s 69,100. This was a “staggering decline”, HBF said, when the industry had planned for year-on-year growth.

HBF adds: “These figures also highlight the wider impact for local communities given the subsequent loss of local contributions and community benefits that come with the development of new homes."

HBF’s report, Building Communities: Making Place a Home, quantifies the levels of community investment that housebuilders undertake in real-world terms. Within the report, government figures show that developers have made contributions – via Section 106 agreements and other mechanisms - of more than £7bn in the past year.

In sector-specific examples, in education enough has been raised from contributions to recruit 8,500 new teachers, in green spaces to plant 8.6 million trees and in council tax to build 25,000 miles of road or fill 53 million potholes.

HBF also highlighted the industry’s community response to the pandemic, supplying PPE and donating funds.

The report calls for a public badging scheme to raise awareness of housebuilders’ vital contributions to communities. The scheme would label community assets that housebuilders have funded through a blue plaque or sign.

The federation also wants developer contributions that cannot be spent on their intended purpose to be returned directly to the relevant community, not the developer.

It pointed to YouGov polling which demonstrates the need for these measures to raise public awareness, with 73% of respondents associating a housing development with increased pressure on facilities and services.

Stewart Baseley, HBF’s executive chairman, said:

"Coronavirus resulted in the closure of housebuilding sites and so inevitably output this year will fall. As well as undermining progress made in recent years to reduce our housing shortfall, this will reduce the huge contribution development makes to community infrastructure and local economies.

"Our report shows the true value of home building, not just in terms of bricks and mortar, but in the investment that comes with it for local communities, from building schools and hospitals to parks and leisure centres.

"A public badging scheme would go some way to improving awareness among the public about what development can mean for their communities.”

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