Housing sector could collapse, warns thinktank
Analysis by the Centre for Policy Studies (CPS) shows that housebuilding could fall by around 38 per cent over the next year and is unlikely to recover until well into the 2020s.
This means that at least 76,000 homes may not be built this year because of the coronavirus crisis.
The CPS has called for a new Help to Build scheme that would provide housebuilders with a grant of up to £25,000 per new build property for 12 months.
The group says this would ensure the construction of around 150,000 homes next year if capped at £3bn.
Alex Morton, head of policy at the CPS, said: “The UK housebuilding industry is not just economically and socially vital, but particularly vulnerable to the impact of recession. We cannot afford a repeat of the past two economic crises.”