Wed, 26 Mar 2025

Wed, 26 Mar 2025 Housebuilding plans forecast to boost economy by £6.8bn

Planning reforms could result in 1.3 million new homes by the end of the decade, watchdog says.

* Housebuilding forecast to hit a 40-year high
* Reforms to planning system expected to boost economy by £6.8bn
* 1.3 million new homes across UK expected by end of decade
* Government target: 1.5 million new homes in England over next 5 years
* OBR warns that uncertainty remains due to factors such as construction worker shortages and local opposition
* Industry leaders say tens of thousands of new recruits needed to deliver government's target
* Government announces £600m funding for training up to 60,000 more skilled construction workers
* Critics argue reforms disregard local concerns and will be hard to achieve due to infrastructure and land shortages
* OBR estimates planning changes could boost housebuilding by 170,000 over next 5 years
* Number of new homes annually projected to reach a 40-year high of 305,000
* Boost to economy expected to increase size of UK economy by 0.2% by 2029/30
* Small reduction in average house prices expected due to increased supply
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