UK government will provide funding to home builders
Chancellor Rishi Sunak has pledged to provide £2.2 billion in funding for home builders. Most of this financing will be in the form of loans for home builders, including those using modern construction methods.
Another £100 million will finance the authorities in 2021/22 to support the construction and regeneration of houses, including for serviced plots for self and custom builders.
The announcement was made in yesterday’s Spending Review.
In response, the National and Custom and Self Build Association (NaCSBA) said: “No details have been released so far on the format or timeline of the Construction Assistance program, but NaCSBA hopes to work with the Ministry of Housing, Communities and Local Government to shape the parameters of the program.”
This funding is part of the £7.1 billion pledged through the “National Home Building Fund,” a title used for government housing investments.
Another part of the fund is £4.8 billion of previously announced capital grants for land rehabilitation, infrastructure, and land assembly.
Sunak also announced that £12.2 billion will go towards the Six-Year Affordable Housing Program, which provides grants to support affordable housing development.
“These investments are highly positive for the market recovery.”
Jeremy Leaf, North London Real Estate Agent and former RICS Residential Chairman said: “Hopefully the funds will be used to improve the pace of supply of affordable new homes for sale and rent in the places of greatest need.”
“Increased support for first-time buyers when the stamp duty concession ends and Help to Buy Part 2 begins in the spring are other areas that could help keep transaction numbers high.”
“Its value to the broader economic recovery, particularly employment, has proven crucial in recent months.”
“The stimulation of spending on infrastructure would also be very welcome since these projects are often the cause of delays in the delivery of houses.”
Yesterday, the government published the National Infrastructure Strategy and the Green Book Review.
As part of this, the government will launch a National Infrastructure Bank next spring to allocate billions of pounds to major capital projects.
“The UK government is committed to helping home builders.”
Melanie Leech, Executive Director of the British Property Federation, said: “New investment in infrastructure to connect and modernize places, while meeting the government’s Net Zero Carbon commitments, will be critical to the UK’s recovery, and the announcement of a new National Infrastructure Bank suggests that the government understands the need for a long-term strategy and commitment to attract private sector investment along with public spending.”
“The result of the Green Book Review, which sets out changes in the way the government evaluates and evaluates spending decisions, should also mean that the private sector can more effectively partner with public investment to generate economic benefits, broader social and environmental issues in an inclusive manner across the country.”
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