Chancellor George Osborne has announced plans to advance £1bn in loans to unlock development sites in Manchester, Leeds and elsewhere around Britain to help address the “weakness” of the current housing supply.
Delivering the Autumn Statement today, Osborne drew attention to the Help to Buy scheme which has aided potential homebuyers with a small deposit to purchase a home, as well as the Right to Buy initiative which helps residents of social housing to purchase their home.
However, the Chancellor says the need for an increase in house building is critical to maintaining a “functional, stable housing market” and says plans are in place for local councils to begin selling off swathes of social housing to create help increase the supply of housing.
Crown Mortgage Management chief executive Andrew Doyle says: “Today’s announcement from the Chancellor to advance £1 billion in loans to unblock large housing developments for new homes in Manchester, Leeds and across the country is aimed at stimulating housebuilding given that shortgage of supply is a major problem and this is certainly a step in the right direction.
“Furthermore, he has pledged to expand right-to-buy and increase the housing revenue account cap by £300m to allow councils to borrow more to build new homes.”