The ripple effect of housebuilding goes beyond simply delivering new homes

The positive impact of new build developments delivering homes across London, and indeed the country, is something that is often overlooked across our industry. Whilst naturally the focus of new developments is on increasing housing supply, it is vital that we look beyond simply delivering homes – it’s also about building communities. We need to educate those around us on the wider socio-economic benefits of housebuilding, and the pivotal role we play in improving communities to enhance them for future generations.

The latest HBF figures show that new housebuilding generated £53.3bn of economic output to the UK economy in 2023, with 87% of this contributed through private sector housing – a figure that was considerably higher than the £36bn last reported in 2018. In addition, it is estimated that over £1.5bn of S106 contributions are made in England each year, alongside supporting up to 834,000 jobs both directly and indirectly in England and Wales.

These figures demonstrate the scale of impact nationally, but how does this translate at a regional level?

In 2024, before our merger with Redrow, Barratt’s London and Southern region added £244.5m to the UK’s economic output, supporting employment for a further 3,400 individuals and employed 26 graduates, apprentices and trainees. This has directly benefitted a number of London boroughs, including Ealing, Harrow, Barnet and Brent. In addition, the region contributed £5.6m to local authorities, alongside £70.3m on physical works benefitting local communities, and creating an additional £10.2m spending in shops and services by residents of new homes.

Our upcoming Park Royal development, a partnership with supermarket giant Asda to deliver around 1,500 new homes including approximately 500 of which will be affordable, together with a new Asda store set within revitalised public spaces creating a vibrant town centre, is a prime example of the ripple effect in action long before spades are in the ground. Located within the Old Oak Common impact zone, the area has seen a significant boost in investment thanks to the impending arrival of HS2.

Over the next decade, the impact zone is predicted to add £10bn to the West London economy, demonstrating the wide-reaching legacy of the new transport hub years before the station has opened. It is this early investment that creates opportunity, which would not be possible without developers being prepared to put their head above the parapet and become involved in local areas at the earliest moment.

With current market challenges around housing delivery, affordability and skills shortages, cross-sector collaboration can turbo-charge opportunities, with large-scale regeneration projects increasingly being realised through partnerships. The West London Partnership is an industry-leading collaboration between us and Places for London. With an estimated value of £2bn, the partnership will deliver over 4,000 new homes over the next decade across West London.

This follows the success of the now-complete Blackhorse Road in Walthamstow, and Wembley Park Gardens, which is under construction. Thanks to the combined skillsets, the partnership schemes have boosted job opportunities, including providing apprenticeships for young people, and improved local infrastructure, demonstrating how partnership working can further enhance the ripple effect of new homes developments.