The Treasury will directly fund developers with £2.3bn to help build 200,000 ‘starter homes’ while a further £4bn will be spent on providing 135,000 ‘shared ownership’ homes.
A further £200m will be spent on providing 10,000 new homes that tenants can live in for five years at reduced rents while they save for a deposit, while £400m will go towards building 8,000 specialist homes for the elderly and the disabled.
Chancellor George Osborne is expected to say: “In the end spending reviews like this come down to choices about what your priorities are.
“And I am clear: in this Spending Review, we choose housing. Above all, we choose homes that people can buy.
“For there is a crisis of homeownership in our country. We made a start in the last Parliament, and with schemes like Help to Buy the number of first-time buyers rose by 60%.
“But frankly we need to do much more. Today, we set out our bold plan to back families who aspire to buy their own home.”
The “starter homes” programme pledged to provide 200,000 homes for first-time buyers under the age of 40 by 2020 at a 20% discount. The homes will cost a maximum £250,000 outside London and £450,000 in the capital.
The ‘shared ownership’ homes will be available to all households earning less than £80,000 outside London or £90,000 inside London.
