Government unveils £10bn investment to kick-start housebuilding
Chief Secretary to the Treasury Danny Alexander and Housing Minister Mark Prisk have set out how two investment schemes will provide up to £10 billion of lending guarantees to businesses that want to build new affordable homes.
The ministers are publishing further details on the schemes that will use the Government’s fiscal credibility to provide property investors with low-cost finance so they can deliver new private rented or affordable housing.
Both schemes were revealed in September 2012 to kick-start private investment in the housing sector, which will create thousands of new homes and jobs, boosting growth across the country.
The guarantees will support new-build projects, located in the United Kingdom. The private rented sector guarantee will back a variety of options to invest in new homes for private rent, from building new homes to converting existing commercial spaces into rental properties.
This will make vital finance available for projects in any part of the UK that have a minimum value of £10 million. The new homes will have to remain in the private rented sector until the money is paid back.
Following extensive consultation with the housing sector, the government is setting out eligibility requirements and how the guarantees will be structured, in the scheme rules for affordable housing and the scheme rules for private rented housing. It is also publishing an invitation to tender for the running of the schemes.
Chief Secretary, Danny Alexander said: “The announcement today shows we’re getting on with delivering an ambitious guarantee programme, giving projects across the UK a unique opportunity to take advantage of the strength of the UK’s balance sheet, allowing businesses and homeowners to benefit from lower borrowing costs and more affordable housing.
“We must build on this momentum to boost vital investment in the housing sector, creating jobs, supporting small businesses and building the foundations for growth across the country.”
Housing Minister Mark Prisk said: “The housing guarantee schemes will help to get spades in the ground, create jobs, and establish new business models that will ensure the private rented sector continues to grow and more affordable homes are delivered.”
What is your reaction to the new funding announced by the Government that will create new jobs and boost the trades? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter pages.
Posted on February 4, 2013, in Affordable housing, Building Construction Industry, Building Engineering Sector, Business, Career change, Construction, construction jobs, construction news, Employment, Environment, Government, Housing Scheme, Infrastructure, jobs, Politics, Property maintenance busines, t4ts, Trades, train4tradeskills, Train4TradeSkills News, UK Economy and tagged 4, affordable homes, £10bn investment, Building industry, Chief Secretary, construction, Danny Alexander, Department for Communities and Local Government, Employment, Housing guarantee schemes, Housing Investment, Housing Minister Mark Prisk, new jobs, news, Private rented sector, Renting, skills, t4ts news, trade, trades, train, train4tradeskills, Treasury. Bookmark the permalink. 1 Comment.