And Labourís proposals will likely garner widespread popular support, particularly in London and the South East of England where the inflation of prices through increased demand has had a significant impact on the capabilities of young people to acquire a property.
Labour has revealed that they intended to increase the house building capabilities of small businesses in a bid to create almost 250,000 new jobs across the country.
With the 2015 general election less than 18 months away, now, campaigning season is set to open in spectacular fashion, with party leader Ed Miliband keen to portray Labour as ëfamily friendlyí and in touch with the everyday individuals of the UK.
The house building imitative will allow small businesses to acquire land without having to utilise the services of massive construction companies. It is hoped that this new working space will create a monumental 233,000 new jobs in the next few years and will create the personal finances of thousands of families across the UK.
Emma Reynolds, MP for Wolverhampton North East, was the first of 5 shadow cabinet ministers to outline Labour
proposals to tackle the ongoing ëcost of living crisisí, with a further 4 speeches planned for the next few weeks.
Mrs Reynolds identified that Labour will push to increase the powers of small firms to purchase and build on towns and garden cities. She also said that they would make improvements in the land market that made it more transparent and would force local providers to have a higher percentage of smaller sites within their 5 year supply.
The decline in the number of middle and smaller site constructions has negatively impacted competition within the property market and as such as decreased the levels of house building across the country Ms Reynolds argued.
This is because the small levels of competition has meant that prices for construction have remained high, and has essentially priced out small businesses who have been looking for land to expand their premises.
Government statistics for house building in the past three years indicated that almost 3000 building companies closed down between 2010 and 2012, which by extension cost thousands of people jobs.
Ms Reynolds said: “The housing shortage is central to the cost-living crisis that Ed Miliband and the Labour Party have been talking about for months now.
“It is putting at risk what Ed Miliband has called the promise of Britain. A promise that each generation will pass to the next a life of greater opportunity, prosperity and wellbeing.
“And we must face the fundamental problem that there are simply not enough homes for people to buy and rent affordably.
“To achieve our ambition of doubling house building and then going further to meet need, we need a thriving building sector.
“Building those extra homes could bring up to 230,000 jobs to our construction industry and I want to see many of those jobs created by small and medium sized builders.”
The UK has a relatively low custom build rate within its land market compared to other Western countries such as the US with only 9% of buildings being self constructed compared to 45% in the states. France has an even higher rate of 60% whilst in Austria a sizeable 80% of buildings are self constructed.
Ms Reynolds argued that bringing the UK in line with these countries would improve the standard of housing in the country as well as introducing much needed competition to improve prices within the market.
With housing demand in the UK somewhat rejuvenated in 2013 due to the funding for lending and help to buy schemes, it can be argued that the logical next step to restoring the property market would be to bring house building levels up to ensure supply matches demand.
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