Affordable Housing Scheme Will See Taxpayers Underwrite Mortgages
A £400 million fund to kick-start housebuilding is set to be announced as part of Government plans to solve Britain's housing crisis.
David Cameron and Nick Clegg will pledge to break the "current cycle in which lenders won't lend, builders can't build and buyers can't buy" when they unveil the Government's housing strategy.
That will mean people who "play by the rules" can "expect to own a decent home of their own", they insist.
The £400 million Get Britain Building fund will target housebuilding schemes that have stalled through a lack of development finance. It is set to "unlock" the construction of up to 16,000 homes and around 3,200 of those would be affordable properties, Downing Street said.
The cash injection would also support up to 32,000 jobs, according to officials.
It comes on top of a £500 million Growing Places Fund for development announced earlier this month, No 10 said.
The Laying the Foundations: a housing strategy for England report is also expected to set out details on a range of other policies to revive the industry and solve the homes shortage, including allowing first-time buyers to get bigger mortgages and boosting right-to-buy council home discounts.
Measures to end the "national scandal" of homes lying empty and to improve the quality of housing for older people will also be announced. And the strategy will set out plans to make high earners living in social housing pay market rates, as well as guidelines for local authorities over large scale developments.
Taxpayers will underwrite hundreds of millions of pounds of mortgages under the strategy, it was later reported. The Government will carry the risk of some lending on newly-built homes, according to the Independent, in the hope to help first-time buyers get on the property ladder by allowing deposits to drop from 20% to as little as 5%.
A Downing Street spokeswoman said: "Full details of the Government's ambitious Housing Strategy - which will tackle the housing shortage, boost the economy, create jobs and give people the opportunity to get on the housing ladder, will be published tomorrow."