Government To Reveal Plans for Affordable Homes
A recent BBC article has mentioned that plans are to be unveiled for first-time home buyers, will be allowed to borrow up to 95% of their value, with the government underwriting part of the risk.
David Cameron is set to reveal that they will be part of a scheme to deal with an acute shortage of affordable homes within the UK.
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A £400m fund will be injected into the scheme to help kick start the project, which is ready but lacking necessary finance, in July next year and aims to aid 16,000 new homes and up to 32,000 jobs.
One of the government’s economic priorities is building more homes, and is calling the plans ‘radical’ and a ‘step change’ in their approach.
Unfortunately just a mere 121,200 new homes were made available in 2010 – 11, which is 6% less than the previous year.
Last year saw the number of new builds and conversions fall by 23%, prompting Labour to say the government failed to provide a solution for this problem in its first year in power, and in some parts of the country the situation has worsened.
Ministers are to intervene to support building projects that have been delayed by funding problems, in an attempt to stop this decline.
Hopefully 450,000 mainly affordable homes will be built on a majority of publicly-owned brownfield sites, by 2015.
Ministers say that many empty properties will be brought back into residential use, plus new providers will be encouraged to enter the housing market.
Tenants of social housing are likely to get the right to buy their home for as little as half the market price, a hallmark of the Thatcher government in the 1980′s, in an attempt to help potential buyers.
According to PM David Cameron and Deputy PM Nick Clegg, the UK will be facing a situation where ‘lenders wont lend, so builders wont build, and therefore buyers can’t buy.’
Jack Dromey, Shadow Housing Minister said “With millions in need of a decent home at a price they can afford, the country is gripped by a growing housing crisis.”
He carried on to say “Despite 127 government announcements, more than one week since the coalition took power, their own figures show a 6% fall in new homes and a 10% increase in homelessness.”
As part of their five-point plan for boosting growth, the opposition have urged ministers to levy a £2bn tax on bank bonuses to pay for 25,000 new homes and 100,000 new construction jobs for young people.
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