The move seeks to reduce unemployment

Feb 23, 2009 11:01 GMT  ·  By
2020 Group's initiative could provide homes for 200,000 UK citizens by 2011, while reducing unemployment and stimulating the economy
   2020 Group's initiative could provide homes for 200,000 UK citizens by 2011, while reducing unemployment and stimulating the economy

British people have shown that they are very sensitive about the state of their economy by taking matters into their own hands, and forming the 2020 Group, an initiative that has the sole purpose of urging the government to construct more houses. By doing so, UK authorities will solve multiple problems at once, and will offer the country's economy a much needed boost.

The group says that, by building an extra 100,000 homes by 2020, Britain will avert some of the problems it currently faces, such as the rising unemployment, the surging housing prices, and the lack of demand for construction products. Indeed, if the government takes heed of the group, all of these troubles could be resolved in one swift blow, admittedly spanning 11 years, and the financial sector would be brought back to life.

By the end of 2010, official estimates place the number of Britons on social housing waiting lists to around 5 million, following sharp rises in repossessions. People who have lost their jobs find themselves unable to pay their mortgages and loans, and are therefore forced to foreclose and move to poorer areas or in the streets. The 202 Group claims that an additional 450,000 jobs will be lost by 2010, which will further place strain on the government to provide social welfare checks to all its citizens.

The idea “could kick-start the economy, save jobs, and deliver new homes for more than 200,000 people. This is a one-off chance for the government to stimulate the economy and help meet housing need in one fell swoop,” David Orr, the chief executive of the UK National Housing Federation, argues. “Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder,” the chairwoman of the Local Government Authority, Margaret Eaton, adds.

The 2020 Group's recommendations would reportedly:

● Save 30,000 jobs in the industry, as well as thousands that support it, including in building materials, furniture and white goods;

● Preserve construction jobs and apprenticeships that would help prevent a loss of key skills;

● Enable house builders to keep on investing in housing supply and reducing the risk of a housing supply shortage once the economy recovers;

● Improve cash-flow and reduce risk for developers and suppliers currently experiencing severe financial pressure;

● Increase labor market mobility by providing more affordable and social housing.