The government needs to release £6 billion for affordable housing developments, a new collection of construction industry professionals has said.

According to the 2020 Group, it is possible for the government to build its way out of recession, if it is prepared to invest in new construction initiatives. The group has warned that 45,000 construction industry workers will be forced out of work by 2010, although this could be averted says group chair and economist Kate Barker."Support for housing today offers excellent value in terms of sustaining economic activity and reduces the risk of a very severe loss of capacity in the housing and related industries," Ms Barker notes. A member of the Bank of England's monetary policy committee, Ms Barker says waiting lists for social housing are lengthening and the group's proposal for more affordable housing "meets a real and urgent need".

The government has said it would build three million new homes by 2020, but figures from the Department for Communities and Local Government have revealed construction is down six per cent.

Source: Direct News 23/2/09