Sign up to our Editors Choice newsletter now! Click here

British Investment Bank 'would be major player in solving housing crisis'

Accessibility Menu

Menu Search

24dash - The UK's most up-to-date social housing and public sector news website

British Investment Bank 'would be major player in solving housing crisis'

24DASH.COM Logo

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

British Investment Bank 'would be major player in solving housing crisis' British Investment Bank 'would be major player in solving housing crisis'

A British Investment Bank could be the answer to the housing crisis as it would overcome some of the key barriers to housebuilding, according to a report published today.

The new bank, which would be jointly owned by central and local government, could double the rate of housebuilding and support sustainable urban extensions, the Smith Institute report argues.

The ‘Funding Housing and Local Growth: how a British Investment Bank can help’ report by Dr Nicholas Falk draws on research into the roles of state investment banks in France, Germany and the Netherlands.

It shows that such banks can make a difference to both the quality and scale of growth, not least by raising long-term private funds and working closely with local councils.

The report argues that the bank (working through a dedicated local government backed Municipal Investment Corporation), would have the capital, local legitimacy, and expertise to assess and de-risk projects.

Nicholas Falk said: “State investment banks, working hand in hand with local government, work well in France, Germany and the Netherlands, so why not here? We need a bolder approach which allows councils to mobilise private funds for housing and growth for the long term.

"A British Investment Bank would be a major player in solving the housing crisis”.

The report argues that a new British Investment Bank would:

• Distinguish the good projects from the bad ones, and channel more investment into locations where the conditions for long-term economic growth are right
• De-risk complex projects, e.g. only lending money where local authorities are committed to allocating appropriate sites, and providing the necessary soft infrastructure (schools etc.)
• Take a longer-term perspective than the private sector, for example giving more weight to investments that reduce energy consumption
• Join up public investments in local transport and energy solutions with related developments
• Encourage collaboration between adjoining local authorities and utilities by supporting sound long-term investment plans

Comments

Login and comment using one of your accounts...