The government is planning to act to unblock some stalled housebuilding projects which could result in some 50,000 new homes being built in the New Year.
The Deputy Prime Minister Nick Clegg is set to announce the move amid pressure from housing groups and business leaders alike to build new homes, which, they claim, would have the added benefit of creating jobs and stimulating growth in the economy. Clegg is also likely to mention the government’s plans for a competition to build new “garden cities and suburbs”, similar to moves which followed the Second World War.
The announcement comes in the light of figures, just released, which show that in the 12 months to the end of September, new housing starts fell by 9%, although completions rose by 6%. Clegg will say that the government has found a number of schemes which have “hit a wall” and that the government will intervene. He says this will include providing funding in the form of loans to be repaid if the homes are sold.
The news received a cautious welcome from the National House Building Council which nevertheless said that this programme should not come at the expense of other short-term measures which could deliver growth quicker. The shadow housing minister Jack Dromey said the government should be supporting Labour’s proposal to use the windfall from the 4G auction to build 100,000 affordable homes and provide another stamp duty holiday for first-time buyers.
