The alliance believes that George Osborne has a golden opportunity to drive the economy through the building of new homes and upgrading existing stock to help tackle the housing crisis.
Chief executive of the MMA, Mike Leonard, has written to the Chancellor setting out a five-point plan to drive the economy quickly forward.
He states: “This is a formula that can and will achieve our shared objective to create jobs and growth and regain our Triple A credit rating.
“Our industry, as it has done in all major recessions, stands ready and waiting to build the new homes we so badly need and where appropriate, extend and improve the existing housing stock.
“Many European countries have a surplus of housing stock and for them building their way out of recession is not an option.
“Investment in housing is good for Britain as 92% stays in the UK and every pound invested generates £2.40 for the wider economy.”
But Leonard warned that time was pressing. The multiplier for the economy as a whole only worked while materials and products were still being produced in the UK.
“If we allow this decline to continue, we will have no choice but to import the materials to build the homes we have to construct in coming years.”
Recommendations
Find funds to build 25,000 extra public rented homes by 2014, delivered through local authorities, which are key to delivering right homes where they are needed.
Set up joint task groups to work with banks and encourage lending to SMEs
Scrap plans to pay the rent element of housing benefit direct to tenants
Work with lenders to establish a range of low interest home improvement bonds for homeowners with equity
Cut VAT to 5% on labour element of projects over £5,000 for one year.
