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Nottingham Building Society helps boost building

Nottingham Building Society helps boost building

The Nottingham Building Society has developed a Land and New Homes proposition to help boost the numbers of affordable housing and encourage more first-time-buyers onto the ladder.

Simon Taylor, chief operating officer for the mutual, said the plan was part and parcel of the its commitment to helping its customers become homeowners.

He said: “It is well known that there are not enough new housing developments being built and that is leading to a serious shortage of homes in some areas.

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“As a mutual society we started out more than160 years ago helping our members to build their own home. Therefore it is in our ethos to not only help customers save and plan for the future financially but also to help them with home buying.”

The Land and New Homes proposition aims to boost house building by giving experienced property developers in its Central England heartland support in creating new residential developments.

The society will give development finance of between £250,000 and £2.5m to developers, and sell all completed properties through Nottingham’s network of estate agents.

Mr Taylor pointed to recent statistics from the department for communities and local government, which showed that in 2007 there were 219,070 new homes built in the UK whereas by 2014 the figure had fallen to just 141,000, leaving a well-publicised shortfall in supply and demand.

He said that, back in 1970, the number of new homes built was 378,320, and that now this was an important issue for every political party to consider as the general election approaches.

“We are looking forward to working alongside developers and playing our part in giving house building a much-needed boost”, he added.

Last year, Paul Smee, director general of the Council for Mortgage Lenders, said that while he applauded recent moves by the financial policy committee of the Bank of England to ensure financial and economic stability stayed on the level, there was still an underlying need for houses to be built.

Adviser view

Stephen Williams, analyst for London-based wealth manager Brewin Dolphin, said: “The government has not done anything to increase the supply of houses. Yes, in the Budget it created 20 new housing zones, which is positive, and it got excited by help-to-buy and created the H2B Isa. But I do not think this will help much, only marginally. I think the government has stimulated the demand side but not done much on the supply side.”