House-building could sustain economic growth for the next decade, if the Government and Bank of England focus on fuelling supply instead of dampening the demand from aspiring home owners, according to one of Britain's leading developers.
The remarks accompany a new report, published today (Friday 18 July), which reveals the economic impact of the Berkeley Group and the potential contribution of house-building to the British economy.
Analysis by Ernst and Young shows that in 2014 alone, the Berkeley Group supported 21,000 jobs in the UK. This is more than the entire workforce employed by London Underground. Each new home built by the developer sustained 5.6 jobs across the UK.
Berkeley also contributed £1.4 billion to Britain's GDP last year, more than the entire UK maritime industry (£1.1 billion).
In total, between 2009 and 2014, Berkeley contributed £5.5bn to the UK's GDP. This contribution grew by an average of 19% per annum during this period, compared with an annual average GDP growth over the same period of 3%. The company also generated £1.6 billion in tax.
Rob Perrins, Managing Director of Berkeley Group, said:
'This is hard cash and real people, making things that Britain needs. If one medium-sized company can deliver this, just imagine what could be achieved nationally if we met the housing shortfall.'
'The problem we have is not too much demand. It's too little supply. Instead of making it harder to get a mortgage, the answer lies in releasing more land to the market, stronger political leadership, and focusing on the quality of what gets built.'
For a copy of the full report and more information visit: http://www.berkeleygroup.co.uk/sustainability/economic-sustainability
Berkeley Group: Ashley Lovell: 01932 584629 / 07799 861590 firstname.lastname@example.org