A massive £5 billion is being set aside to end Britain’s ‘housing deficit’.
The first £2 billion will come from new public borrowing, aimed at funding an Accelerated Construction Scheme – making public land with planning permission more readily available to property developers.
The other £3 billion will be earmarked for loans to developers aimed at pushing through projects that may otherwise fail because of a lack of financial backing.
Industry experts have called upon the government to focus on the renting market due to a deficit in supply of build-to-rent homes. Stamp duty rules were changed earlier this year, to many property developer’s dislike. Since then, the housing market has seen a drop in the number of developers wanting to add to their build-to-rent portfolios.
The Royal Institution of Chartered Surveyors (Rics) argues this drop in supply will lead to a shortfall of 1.8 million rental properties, unless the government acts quickly.
Communities Secretary Sajid Javid, speaking at a conference in Birmingham, said “Tackling the housing shortfall isn’t about political expediency. It’s a moral duty. And it’s one that falls on all of us.”
Britain’s housing marketing is being branded as ‘in crisis’ but the government are taking huge steps in trying to prevent it actually becoming one. Selling off public land (old government buildings etc..), giving builders easier access to green belt land, relaxing rules on turning offices into homes. Local authorities are now being given authority to allow “permission on principle” to sites that can be used for housing to hopefully speed up the process.
Not just in Parliament, but in business, in local government and in our communities. So my message today is clear: it’s time to get building.
Sajid Javid, Communities Secretary