Double glazing and insulation firms have welcomed prime minister Gordon Brown's plans to build three million new homes by 2020.

The pledge, which is being viewed as evidence of the government's determination to tackle the UK's housing shortage, should lead to an increase in demand for double glazing and other forms of insulation.

"The reason the insulation market has increased significantly over the past four to five years and will continue to do so is because the incentives being offered to combat CO2 emissions and global warming are all regulatory driven," said Superglass's John Smellie.

"Gordon Brown, while he is trying to keep prices down by creating more affordable housing, will still want to see those homes follow the same guidelines," he told the Sunday Herald.

The domestic insulation sector is expected to grow by at least 37 per cent over the next four years, due to a combination of the government's decision to increase house-building and its commitment to energy-efficiency.

Gordon Brown is also expected to unveil plans to give local councils more responsibility for drawing up housing plans and to speed up the planning process in order to bring forward the construction of a range of green eco-towns, the Observer reports.

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Author:  Joanne McCabe

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