Labour’s target of delivering an average 370,000 new homes a year could bring about a remarkable £161 billion boost in value to the housing market across England, a lettings agency says.

Benham and Reeves looked at the increase in housing delivery proposed by Labour via reforms to the National Planning and Policy Framework, and which areas should see the biggest boost in new housing stock.

The research shows that across England the proposed increase in new homes delivered to 371,541 would boost housing supply by 21%.

Over the last five years, the average new-build home has increased by an average of 3.5% per year in value and Benham and Reeves estimates that over the next five years, £161.6 billion worth of property could reach the market should Labour deliver on its promise.

The North East is set to see the largest boost with the the level of new homes reaching the market up by 99%. London is the only region expected to see a reduction in new housing delivery under new proposals, with the number of new homes built each year forecast to fall by 18%.

Despite this reduction, London is still expected to see by far the most value added to the property market via the construction of new homes, with an estimated boost of £46 billion over the next five years.

Benham and Reeves director Marc von Grundherr says: “Our new Labour Government has been ambitious from the get go when it comes to the proposed shake up of housing delivery targets and not only could we see a very notable boost to the number of new homes reaching the market, but over the next five years these new homes would also bring a sizable boost to the overall value of the property market.

“Some areas are set to benefit to a far greater extent than others and it’s interesting to see that, under new proposals, London is the only region expected to see a decline in housing delivery. This is despite the fact that it’s probably one of the worst hit areas with respect to a shortage of housing to meet demand.”