Housebuilding can be a great boost to a local economy, as well as the national economy.
It has been assessed that every £1 spent on construction generates a further £2.09 on economic activity, 'higher than the return to most other sectors including advanced manufacturing and finance'.
The Benefit Cost Ratio of spending on housing in returning economic and social benefits has been assessed in the range of £1.7 to £3.7 for each pound spent. While for some regeneration activities this has been assessed up to £5.5 for every £1 spent.
Total social return benefits from effective regeneration can be greater still – it is estimated that there is a total social return on regeneration investment of around £10 for every £1 spent.
In other words, investing money in housing and housebuilding makes economic sense and social sense. All the more so in more deprived and difficult housing markets.
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