The Future Homes Commission set up by RIBA says that the building programme would produce a better return than shares and bonds and would drive the wider economy back towards steady growth.
The commission was formed in response to growing concern that ministers in the last two governments had presided over a decline in house building, apparently powerless to increase construction.
Last year 113,340 homes were built in Britain, less than at any time since 1923, despite 230,000 new households being formed each year.
After a year-long inquiry the commission recommended a three-fold increase in the number of homes built every year, an independently managed £10bn housing development fund and a lead role for local government.
It also advocated a greater focus on the design of new homes and a more consumer-orientated housing market.
Sir John Banham, chairman of the Future Homes Commission, said: “We have concluded a housing revolution is entirely possible and will lead to economic growth.
“We strongly believe that local government can become the leader of new development once again, by using their assets and powers to create the type of mature, sustainable, mixed tenure communities that Britain needs and that institutional and international investors want to invest in.”
The commission’s report, Building the Homes and Communities Britain Needs, followed a year-long inquiry launched by the Royal Institute of British Architects.
RIBA’s president Angela Brady said the report was an excellent starting point for delivering a radically improved housing market.
She said: “This report gives a most comprehensive picture of the current housing crisis and details some simple solutions that will, with a concerted effort result in better housing. We support the need for greater collaboration between all parties involved in delivering housing in the UK and will be looking in detail at the Commission’s specific recommendations to ensure we play an active part in the housing revolution.”
