Laura Sharman 30 June 2020

Research suggests 84,000 fewer homes will be built this year due to Covid-19

Research suggests 84,000 fewer homes will be built this year due to Covid-19 image

More than 80,000 new homes will not be delivered this year due to the coronavirus pandemic, research has revealed today.

Research by Savills for Shelter predicts that overall output will drop from 255,000 last year to just 171,000 homes in 20/21. Without government intervention, it argues that social homes could see a yearly drop of 30%.

It also estimates that 116,000 construction jobs could be lost by 2020/21 as housebuilding stalls.

Shelter is calling on the Government to bring forward the £2.2bn Affordable Homes programme and spend it in the next two years on building social homes.

Polly Neate, chief executive of Shelter, said: ‘As the government prepares a major push on infrastructure and investment, it has a perilously short window to avert a lengthy housebuilding crash that will wipe out tens of thousands of new homes and jobs.

’By bringing forward planned spending and building social housing the government has the chance to avert disaster.’

Cllr Tom Beattie, vice chair of the District Councils’ Network, said: 'The loss of new homes built will have a significant impact on the five-year land supply, which without protection would allow developers to bypass local community wishes.

'In the short term the Government should suspend the five year land supply and Housing Delivery Test requirements, and devolve the tools for councils invest in the infrastructure and building that will create jobs and homes.'

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