Government plans £3bn housing fund

The Conservatives have announced plans to launch a £3bn fund to encourage house building, according to The Sunday Telegraph newspaper.

In his Autumn Statement, Chancellor of the Exchequer Philip Hammond, is expected to reveal plans to encourage small and medium-sized developers to build more affordable properties.

This policy change follows the government’s focus on young people seeking to get on the property ladder, emphasised by Theresa May in her first speech as Prime Minister.

The creation of the fund comes in the wake of a new analysis by Capital Economics, underlining the news that the government will miss its target to build one million new homes by 266,000 houses.

The new fund is expected to combine several existing schemes, including the £525m builders’ fund and the £1bn large sites infrastructure programme.