CBI urges Osborne to build 50,000 affordable homes

The CBI recommends building new affordable housing like this estate in Liverpool. Credit: PA

Around £1.25bn should be spent building 50,000 affordable homes, which would create 75,000 jobs, the business lobby group CBI urged.

Director general John Cridland said: "The Government must stick to its fiscal plan but now is the time to kick-start confidence.

"Our measures will provide another boost for the housing market and will benefit first-time buyers, those trapped in negative equity and those looking to refurbish their homes.

"To boost the construction sector, we are calling for 50,000 new affordable homes to be built, incentives for refurbishing empty homes and the housing guarantee scheme to be extended to all types of housing."