New Strategy to increase House Building

New Strategy to increase House Building

18th February 2020

The Coalition Government have recently published a Housing Strategy that proposes to increase house building, and create economic growth and jobs.

The government paper emphasises the role that housing construction can have in boosting the economy. Many of the measures announced are the result of extensive efforts by the Home Builders Federation to inform government thinking at the highest levels.

Key proposals for house builders are:

– A new build indemnity scheme which will be developer/sales led. This will apply to any house or flat of any house builder who wishes to participate. For sales under the scheme, home builders will deposit 3.5% of the sale price for a period of 7 years in a captive fund.
– A £400 million fund to provide finance for development in the form of equity stakes, risk sharing and loans to house builders to unlock stalled sites.
– The Government will consult on measures allowing developers to require local authorities to reconsider s106 agreements made prior to April 2010.
– The Government’s Property Unit will be publishing data on almost all Government land to enable communities and developers to identify potential sites.
– A £500 million infrastructure investment fund for Local Economic Partnerships and local authorities to boost local economies and address local housing supply issues.

This strategy plans to reignite the housing market and lay the foundations for a more responsive, effective, and stable housing market in the future.