Under the scheme, key workers and first-time buyers (FTB) could be helped onto the property ladder, with councils able to offer their own deals through new homes built on their land. If councils take up the option it could see thousands enter the FTB market with 14 local housing companies (LHC) already expressing interest.
Currently councils have limited influence over how surplus land is developed once it has been sold to the private sector, but LHCs could put the land back into the hands of councils, enabling them to double affordable housing levels to at least 50 per cent on sites, and directly offer key workers and FTB shared equity deals.
Under the proposals, councils would provide their surplus public sector land to the LHC. The local authority would play a full role in agreeing the development plan, including being able to directly offer low cost housing deals to meet local needs.
In return for taking the land cost out of the equation, private sector partners, such as builders and registered social landlords, would provide equivalent investment and the expertise needed to build the homes.
Housing Minister, Yvette Cooper, said: “We urgently need to build more homes for FTBs and families. That’s why we are investing £10.2 billion to increase affordable housing. This is a new way to help councils to do their bit to support new homes for key workers and families in their areas.”
David Holmes, corporate affairs manager at Yorkshire BS, said: “We support any plan that helps people get on the housing ladder.”
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