Chancellor announces £10bn house-building boost

Published by Max Salsbury for 24dash.com in Housing and also in Central Government, Development

Chancellor George Osborne has outlined plans for a £10bn house-building boost by housing associations and the private sector.

Under the scheme, the Government would guarantee the debt incurred by borrowers, and is similar to an announcement last month in which the Government suggested underwriting bonds issued by housing associations to reduce borrowing costs.

Osborne, speaking on the BBC's Andrew Marr show yesterday, revealed the plans as part of a new strategy to boost the economy with investment in infrastructure.

He also announced plans to deregulate planning rules in a bid to speed up and assist new developments.

However, his plans have alarmed some campaigners who believe that such a move would threaten the green belt.

Writing at the weekend, Prime Minister David Cameron laid bare his frustrations at attitudes he believes block building progress. He said: "A key part of recovery is building the houses our people need, but a familiar cry goes up: ‘Yes, we want more housing; but no to every development – and not in my back yard.’

"The nations we’re competing against don’t stand for this kind of paralysis and neither must we.

"Frankly, I am frustrated by the hoops you have to jump through to get anything done – and I come back to Parliament more determined than ever to cut through the dither that holds this country back."

Meanwhile, the Housing Minister Grant Shapps is widely tipped to become Tory Party Chairman in an imminent reshuffle. The position is currently held by Baroness Warsi, who has come to be seen as a liability by the party.

Deputy chairman Michael Fallon and Employment Minister Chris Grayling are also in the running for the position.