THE UK housing shortage is hitting consumers, costing consumers each year and forcing young people out of the housing market, according to a new report by the Confederation of British Industry (CBI).

The CBI report found that shortages have created above-inflation house price rises, which is taking a £4 billion bite out of consumers’ pockets every year in housing and transport costs.

The situation is also holding back many young people from getting onto the property ladder or renting a good home.

Ahead of the party conference season, the CBI has set out a manifesto with a raft of measures needed to tackle the crisis including building 240,000 new homes each year and changing stamp duty.

Katja Hall, the CBI’s deputy director general said: “With conference season around the corner, we need all political parties to put forward election pledges which tackle the UK’s challenges head-on so that we deliver prosperity for everyone not just from next May, but for a generation. Addressing the chronic housing shortage should be near the top of every party’s to-do list.

“A perfect storm is brewing in the housing market. With demographic changes and demand currently dramatically outstripping supply, now is the time for action. Political parties of all colours have made the right noises on the need for more homes, but without serious action the ambition to own a home will become more and more out of reach to ordinary people.“Our research shows the national housing shortage is taking a £4 billion slice out of consumers’ pockets.

She added: “We need a stronger response from politicians who must be ready to take bold decisions from building on low quality green belt land to overhauling Stamp Duty.”

Ian Perry, director of Perry Bishop & Chambers described this as “another wakeup call to all politicians, local and national”.

He said: “The only way to effectively reduce house prices, or moderate the increase, is to supply more building land and encourage more homes to be built.

“We can confirm high demand for all types of property, an increase in homes can only be good for all aspects of the local economy and will eventually lead to improved service provision.”

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