Government Pledges £225 Million for Building New Homes
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- (1888PressRelease) November 26, 2012 - As the housing crisis in the UK rumbles on and concerns continue over the Euro zone there is still a requirement for far more houses in the UK. Many schemes have come and go over the last few years to try and kick-start the building and housing industry and get the market moving, but many never took off, others had very low take up rates. At a recent meeting of the National House-Building Council in London, the deputy prime minister and leader of the Liberal Democrat party, Nick Clegg, pledged to put £225 million of Government money into housing in an effort to get those schemes that are still viable off the ground and hopefully help the ailing economy. The majority of the housing schemes will be led by local councils and in total it is hoped they will deliver just under 50,000 new homes. However, the number of houses actually needed is double this.
Mr. Clegg states that he feels the house building industry has been severely hindered by funds not being made available due to too much red tape and banks no longer lending as readily as they did. He warned that unless something is done more and more small communities will suffer as young people move away to the larger towns and cities in search of work and housing. In turn this will mean the cities are even more congested and the lack of housing will push housing prices and rental rates higher, out of reach of the majority of people. As well as building new homes the Government also has plans for nation-wide competitions to build new garden cities and suburbs.
Housing developers welcomed the pledge and the overall feel is that the quickest and easiest way to create more jobs and boost growth is to put funds into building more homes, concentrate on those sites already identified for building schemes, but where house building had stalled. The idea is the Government funding will be used to leverage private investment and give much needed confidence in the housing sector. However, there were warnings that simply pledging the money is not enough, the Government needs to actually deliver on its promises and state how the funding will be applied and used. It is especially important to see how the NewBuy scheme backed by £10 billion of government guarantees will work alongside new schemes and funding.
The Government needs to reverse half a century of under-building of new homes and also solve issues led by the Labour party's eco-town project which was meant to construct around 20,000 new homes but failed.
It is hoped that attitudes to new building are also shifting as parents see their children struggle to get on the housing ladder and with many parents having to fund deposits and mortgages for their off-spring, if they ever want them to move out and get their own house. The average age for buying a house is now up to 35 years old. Historically there has always been local opposition to building new housing developments.
But many feel the Government is not going far enough by not releasing public land for building or allowing developers to pay for the land once the houses are built and sold and not upfront. There have been countless Government backed schemes and initiatives over the years to try and kick start the struggling economy and housing market. Unfortunately most came to nothing and now most feel that the Government is full of empty promises and action is called for.
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