In a 104-page white paper, titled Fixing our broken housing market, the government offered lots of pledges but little detail on how they would bolster the number of properties available in the UK.
Here is FTAdviser’s summary of the key points in the latest bid by a government to stop taking a piecemeal approach to sorting out the nation’s housing shortage.
1) In a bid to give local authorities dragging their heels with planning permission, the government stated it is offering higher fees and new capacity funding to develop planning departments, simplified plan-making and will give more funding for infrastructure.
2) As a sweetener for developers, the government stated it will encourage greater diversity of homebuilders, by partnering with smaller and medium-sized builders and contractors in the accelerated construction programme. The government also pledged to help small and medium-sized builders access the loan finance they need.
3) For housing associations and other not-for profit developers, the government has already announced funding worth a total of £7.1bn through an expanded and more flexible affordable homes programme. A potential worry for buy-to-let investors is the government pledged to “provide clarity over future rent levels.”
4) For lenders, institutional investors and capital market participants, the government offered a “clear and stable long-term framework for investment,” including products for rent. In return the government called upon lenders and investors to back developers and social landlords in building more homes.
5) The government pledged to continue to support people to buy their own home through the Help to Buy scheme and starter homes. It will crack down on empty homes and promised more action to address areas most affected by second homes.
emma.hughes@ft.com