Wednesday, August 29, 2012

Build build build

Shapps gives 23,000 new homes the go ahead

Grant Shapps said: "We know that every 100,000 homes built in this country contributes one per cent to our Gross Domestic Product. So everyone who has rolled up their sleeves and got this huge development started will have played an important part in helping to boost the economy."

Posted by phil @ 11:01 AM (1732 views)
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6 thoughts on “Build build build

  • i would love to know how it can create 60,000 jobs what utter crap

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  • So 23,000 new homes to be built; 1,500 by 2020 and 3,000 by 2031. When will the other 18,500 be built? 2040? 2050? At this point do I really care??

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  • 1,500 homes to be built in 7 years that is 214 houses per annum, which will contribute 0.0000214% to GDP per annum! Woohoo.

    Mark, by my calculations they will need to employ 280 people per house built to hit that target at the rate they will be building! Don’t think these will be very affordable homes with that kind of overhead.

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  • mark wadsworth says:

    As far as I am aware, to build an average sort of house is about £30,000 in materials and £50,000 in labour, i.e. about two man-years of work, i.e. if there are six people on site they can build a house in about four months. They can do wooden flat packs in a few weeks, but oh no, we Brits love our bricks and mortar.

    So 30,000 new houses a year = 60,000 additional jobs in construction (plus unknown number in brick factories and builders’ merchants).

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  • MW
    a local sainsbury mini mart just got planning permission to destroy a nice area because they claimed they were creating 350 jobs, yeh fat chance.

    just the same as 30,000 houses will not = 60,000 jobs

    there is just no way, what happened to all the olympic jobs? what happened to all the jobs supermarkets create each year? it is all spin city

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  • mark wadsworth says:

    Mark, facts are facts. Building 30,000 houses keeps 60,000 people busy for one year. Once you stop building, those jobs disappear again. Same as the Olympics, yes there were jobs, yes, those jobs are now gone again.

    The more sophisticated view is that building houses adds precious little to GDP – the total rental value of all land is more or less unchanged it is merely diluted over a larger number of homes (and the rental value of land does not ADD to GDP anyway, it is merely a way in which GDP is divided up between productive and unproductive sectors), in reality, it is only that little bit extra living value per house, a few thousand pounds a year which adds to GDP, so 100,000 extra houses = perhaps £500 million extra GDP = 0.3% or something.

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