Deputy prime minister Nick Clegg, in a speech at the NHBC annual lunch today, said the money would be invested in kick-starting housing schemes of 4,000-9,500 units which, together, would account for 48,600 new homes.
“The sites have been held up for various reasons: cash flow problems following the banking crash; bureaucracy and licensing issues and a lack of upfront investment for infrastructure,” said Mr Clegg.
He said some schemes had been delayed for 10 years. The Federation of Master Builders (FMB) welcomed the news but urged the government to do more to assist small and medium-sized (SME) builders “who could mobilise quickly to deliver housing jobs and growth on much shorter timescales”.
FMB chief executive Brian Berry said SME builders delivered over two-thirds of English housing in the late 1980s, but smaller housebuilder numbers had since declined and they now deliver only one-third of housing.
He called for the new funding to also be available to SME developers, as well as action to speed up the government’s deregulation agenda.
The NHBC described the government’s plans, which also envisage the creation of new “garden cities”, as “bold”. It said existing schemes such as NewBuy, FirstBuy and Funding for Lending seemed to be having a positive effect.
“It is now vital that this level of dedicated support from government is sustained and we therefore hope that a long-term commitment to housing is reflected in next month’s autumn statement and beyond,” said NHBC chief executive Mike Quinton.
