The Office for Budget Responsibility (OBR) forecasts a significant increase in UK housebuilding, potentially reaching a 40-year high, due to government planning reforms. These reforms, including mandatory housing targets for councils and easier green belt development, could lead to 1.3 million new homes by 2030, boosting the economy by £6.8bn.
However, the OBR acknowledges uncertainties, such as potential labour shortages in the construction industry and local opposition to new developments. The government’s plan to train more construction workers and prioritize brownfield sites is aimed at addressing these challenges.
While the reforms are projected to increase housing supply and slightly reduce average house prices, experts highlight the need for greater support for first-time buyers and affordable housing.
They also emphasize the importance of a favourable economic environment and interest rates to stimulate demand.