The government is to directly commission the building of up to 13,000 new affordable homes on public land as part of a “radical” new plan, the scale of which has not been seen since the 1980s.
Prime Minister David Cameron will set out plans today to build new homes which he will claim is the most significant use of such a policy since the Docklands regeneration thirty years ago.
The government said the scheme will lead to homes being built at a faster rate with smaller building firms able to build on government sites which already have planning permission.
The new scheme will be backed by a £1.2 billion fund to prepare brownfield sites for the building of 30,000 new homes – available to first-time buyers under 40 at a minimum 20% discount – over the next five years.
Cameron said: “This government was elected to deliver security and opportunity – whatever stage of life you’re at. Nothing is more important to achieving that than ensuring hard-working people can buy affordable homes.
“Today’s package signals a huge shift in government policy. Nothing like this has been done on this scale in 3 decades – government rolling its sleeves up and directly getting homes built.
“Backed up with a further £1.2 billion to get homes built on brownfield sites, it shows we will do everything we can to get Britain building and let more people have the security that comes with a home of their own.”
The first wave of up to 13,000 homes – 40% of which will be starter homes – will begin this year in Chichester, Dover, Gosport, Old Oak Common in North West London and Northstowe in Cambridgeshire.
The projects are part of the government’s commitment to create 200,000 starter homes before the end of the current parliament.
Downing Street said the new investment will help kick-start regeneration and secure planning permission in urban areas, renovating disused or under-occupied urban sites.
Currently the top eight house building companies provide 50% of new homes and the direct commissioning approach will help support smaller builders and new entrants.
Brian Berry, chief executive of the Federation of Master Builders, said: “When it comes to building new homes, the availability of small sites is the single biggest barrier to SME house builders increasing their output.
“Any measures that the government can introduce that will increase the number of small sites suitable for SME house builders will help address the housing shortfall.
“It is also encouraging that the majority of these sites will already have planning permission in place as obtaining permission is all-too-often a lengthy and protracted process – avoiding this time delay should help house builders increase their supply much more quickly.”
However, shadow housing minister John Healey said the proposal would not solve the housing crisis.
Healey said: “Today’s statement promises no new starter homes beyond those already announced.
“With home ownership down to the lowest level in a generation and fewer homes built over the last five years than under any peacetime government since the 1920s, David Cameron needs to do much more to fix his five years of failure on housing.”
