Housing strategy aims to double housebuilding - Shapps

Published by Ross Macmillan for 24dash.com in Housing

Housing Minister Grant Shapps has targeted 200,000 homes a year with measures in the Government’s new Housing Strategy, in a bid to get Britain building and provide a shot in the arm for economic growth.

While the headlines of the strategy were well trailed – such as plans to use Right to Buy (RTB) proceeds to build 100,000 homes, the release of public sector land to build 100,000 more and plans to activate 95% mortgages underwritten by housebuilders and the Government – new money has been found for empty homes, self build and stalled sites.

Last year just over 100,000 homes were built in England – the lowest overall number in any peacetime year since 1923. This compares to an average of almost 175,000 during the five years leading up to 2007.

Shapps is hoping the strategy, as well as existing measures, such as the New Homes Bonus and the 170,000 homes in the affordable homes programme, will help to double that figure.

Mr Shapps told BBC Radio 4 yesterday: “We probably need to be building twice as many homes - that's what all the evidence suggests. We’re getting this right if we’re back to fulfilling the number of homes that people require. We know this is about twice as many as were built when housing slumped to the lowest levels since the 1920s.”

Communities minister Andrew Stunell told 24housing the measures were part of a “much larger” re-shaping of the social sector.

Indeed, the strategy makes clear it wants councils to work with institutional investors to provide housing for rent and will see housing associations and councils having to take on more debt to achieve the coalition’s ‘one in one out’ plan to replace sold stock through Right to Buy.

The Government has previously insisted on keeping 75% of the RTB receipts, however, the strategy does insist – without using figures for clarity – that receipts will “first be used to meet debt on additional properties sold, then will meet Treasury and council forecast receipts, and that the balance will be available for investment in replacement properties”.

The Government insists homes can be built on grant equating to 20% of the build cost, as is being proved by the Affordable Rent programme – where providers are borrowing the majority of the cash to build new homes.

Mr Stunell said the affordable homes programme was well over-subscribed and rubbished suggestions landlords were at full capacity. “It just isn’t true that housing associations have got to the bottom of the barrel yet,” he said.

Meanwhile, Home Group – which manages more than 50,000 homes across England – said extending the Right to Buy to housing association tenants would “unlock” an additional 100,000 affordable homes.