Shapps targets BBC and Royal Mail in land grab for housebuilding

Published by Jon Land for 24dash.com in Housing and also in Central Government, Communities, Local Government

Housing minister Grant Shapps is in talks with the BBC and Royal Mail to find unused sites for housebuilding as he announced today that ministers are on course to release enough land for 100,000 homes by 2015.

In a speech to councils and the housing sector, Mr Shapps said he was now looking beyond Westminster and wanted to see organisations like the BBC, Royal Mail and Network Rail also follow the Government's lead in releasing unused land for housebuilding.

He said the Ministry of Justice, HM Treasury, the Home Office, the Department for Energy and Climate Change, the Department for Business, Innovation and Skills and the Department for Culture, Media and Sport will also look at their land holdings.

He also announced further details of the Government's mortgage guarantee scheme to help not just first-time buyers, but those moving up the ladder.

The "NewBuy Guarantee scheme" brings lenders, builders and Government together to offer mortgages on new-build properties with a fraction of the deposit currently required.

While buyers may typically require £40,000 towards a new home, under this new scheme a £10,000 deposit will get them into a new-build property of their own.

Mr Shapps confirmed today that the scheme - which he expects to be launched next month - would be open to UK citizens buying on new build houses and flats up to £500,000 as their main home - whether they are first time buyers or moving up the ladder.

He also confirmed £432 million in cash bonuses that 353 councils will receive through the New Homes Bonus. It's is the second instalment of the bonus, which has come in for criticism as many councils are using the money to plug funding gaps, instead of building new homes.

Labour's shadow housing minister Jack Dromey said last week: "Designed to incentivise new house building, cash-strapped local authorities are being forced to divert the money, including to protect essential services."

The minister also announced the allocation of the £500 million Growing Places Fund - launched just three months ago - to 39 Local Enterprise Partnerships across the country, helping to create thousands of jobs in construction and related industries.

Shapps also confirmed today that he will allocate £45 million funding to help unlock 18 of the most difficult stalled sites in the country to get workers back on site and 1,301 homes built whilst delivering positive regeneration benefits to those locations.

The funding forms part of the £420 million Get Britain Building fund. Launched less than two months ago, this multi-million pound cash injection is expected to unlock up to 16,000 homes on site that are currently stalled.

He added that scrapping the Housing Revenue Account (HRA) would end a long-standing "tax on tenants" allowing councils to keep the rents they collect and invest the money in their homes.

Grenville Turner, Chief Executive of Countrywide, the UK’s largest  estate agency and property services group, said:
"Today’s announcement by the Housing Minister is a positive signal of the government's intentions  to bring housing to the forefront of the political and economical agenda.

"We are pleased to see that the new build mortgage indemnity scheme – now called the new buy guarantee scheme will be accessible to the wider home buying population and not just limited to first time buyers.  
 
"As deposit affordability continues to be one of the most restrictive barriers to purchasing a property, we are seeing a greater level of competiveness from lenders in the higher LTV mortgage range and opening up the restrictions on prospective buyers who can access the new buy guarantee scheme, can only be a good thing for the market.

"This new buy guarantee scheme will allow prospective home owners take advantage of up to 95 percent mortgages to purchase new build houses and flats up to £500,000.

“In addition, we welcome any measures that provide added protection to leaseholders in the current climate. As the UK's leading lettings network, we have seen rental demand increase significantly, leading to a serious shortage of rental properties available to let.

"With an average of five tenants competing for each available rental property, any Government support to encourage investment in the buy-to-let sector and assist leaseholders to stay in their home when their lease comes to an end.”