The government is aiming to have tens of thousands of new homes built twice as quickly, with the help of additional funds and amendments to the planning rules to encourage building on brownfield sites and derelict shopping centres.
Chancellor Philip Hammond has unveiled a plan to boost the construction of new homes with a pledge of £5bn-worth of new funding.
However, the three key housing policies Hammond and Communities Secretary Sajid Javid confirmed during the annual Conservative Party conference in Birmingham this month will do little to increase the supply of properties in Wimbledon Village or Mayfair.
The key announcements include…
1. A £3bn Home Building Fund to provide small and medium-sized developers with short-term loans. A total of £1bn will come from the Home Builders Federation, which the government says will generate 25,500 new homes. The other £2bn will provide long-term funding for infrastructure, which will unlock up to 200,000 additional homes.
2. £2bn of new public borrowing to fund an Accelerated Construction Scheme to make public land with planning permission available to builders. This initiative promises a further 15,000 homes in this parliament.
3. “Abandoned” urban areas will be transformed by increasing the level of development on brownfield sites. The DCLG says this could encourage a further 140,000 new homes to be built.
These measures will sit alongside a raft of proposals to be included in a new housing White Paper due before the end of the year, according to the government.
The government has also announced the end of its Help To Buy mortgage guarantee scheme.
The flagship scheme, which was unveiled by previous Chancellor George Osborne in 2013, offered first-time buyers the opportunity to purchase a home with a government-backed loan worth up to 95% of the value of the property.
But the new Chancellor announced that more than 30 commercial lenders are now offering loans outside the scheme, meaning that the “specific purpose” of the scheme has now been “successfully” achieved.
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