The cost of planned repairs to Parliament could dramatically reduce the UK housing deficit, new research reveals.
Data examined by property finance specialists Pure Commercial Finance (PCF) shows that for £4bn – the estimated cost of essential repairs in Westminster – over 40,000 new properties could be built, housing almost 121,000 people based on three people per household.
The government’s own figures confirm 430,000 affordable homes have been built since 2010.
Shelter says its stats estimate a deficit of 3.2m homes with some 320,000 homeless in the UK – 170,000 in London alone.
Using internal data, Pure Commercial Finance calculated that the average three-bedroom home in the UK costs £99,842.75 to build, meaning the Houses of Parliament budget, if matched, could house over a third of the UK’s rough sleepers (37.5%).
“Although we would never suggest cancelling the refurbishment of such a prized national monument, we were shocked to see how matching the refurbishment budget could help towards solving the deficit,” said Ben Lloyd, PCF managing director and co-founder.
PCF conducted research into the average cost to build a standard-size home.
The figure was calculated by working out the average cost per square foot to build a home for PCF Finance clients – £112.50 excluding the cost of purchasing land.
This was then multiplied by the sq ft of workable floor space of the average 2/3 bedroom small-large terrace house popular with first time buyers.
That gave PCF a figure of £99,843.75.
Based on the£4bn Houses of Parliament refurbishment cost, this, says PCF, would produce 40,062 homes – should the funds be reinvested or matched.