Government to purchase unsold new homes to stimulate construction growth

(qlmbusinessnews.com via uk.reuters.com — Thu, 6th Oct, 2016) London, Uk —

Britain's government will buy unsold homes built by developers using a 2 billion pound fund announced earlier this week, a move designed to get construction firms to commit to bigger projects, a trade journal reported on Thursday.

On Monday Britain launched a 5 billion-pound housing stimulus package, including plans to borrow 2 billion pounds to increase the pace of house-building which will now be used to guarantee housing developments.

“It's about us going to a house builder and instead of expecting the normal build-out rate of 50 units a year, we'll say: ‘We want you to build all 500 in one go, and what we'll do is guarantee to take them off you if you can't find a buyer',” Edward Lister, chairman of the Homes and Communities Agency, told Property Week.

Although the housing market has shown signs of cooling since the vote to leave the EU, a chronic shortage of properties keeps prices out of the reach of many young and low-income Britons.

A committee of lawmakers estimated that Britain needs to build 300,000 homes per year to meet demand and cool price growth. The country has not built more than 200,000 homes in a single year for a decade.

(Reporting by Andy Bruce; Editing by Raissa Kasolowsky)


Important This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies.