The government will dedicate £2.3bn towards building 100,000 new homes in areas of high demand.
Addressing the House of Commons this afternoon, chancellor Philip Hammond said this would address one of the biggest objections to housing development – the impact on local infrastructure.
A further £1.4bn to deliver 40,000 additional affordable homes was also announced in today’s Autumn Statement.
Mr Hammond said: “This package means that over the course of this Parliament, the government expects to more than double, in real terms, annual capital spending on housing.
“Coupled with our resolve to tackle the long term challenges of land supply, this commitment to housing delivery represents a step-change in our ambition to increase the supply of homes for sale and for rent, to deliver a housing market that works for everyone.”
Mr Hammond reiterated the government’s support for the Help to Buy equity loan scheme and the Help to Buy Isa, which his predecessor George Osborne created.
He said: “The challenge of delivering the housing we so desperately need in the places where it is currently least affordable is not a new one…
“But the effect of unaffordable housing on our nation’s productivity makes it an urgent one.
“My right honourable friend, the Communities secretary will bring forward a Housing White Paper in due course, addressing these long-term challenges.”
Mr Hammond said the government would also fund a large-scale regional pilot of the Right to Buy for housing association tenants.
According to the Autumn Statement it would mean more than 3,000 tenants would be able to buy their own home at a discount.
damian.fantato@ft.com
