The proposals will deliver a substantial number of new homes to help first-time buyers (FTB) onto the property ladder and enable towns and cities to grow their economies by creating new jobs and encouraging business development.
The successful bids put forward by over 70 local authorities with high housing demand contain a wide regional spread from Truro to Lincoln and include major cities like Derby, Leicester, Nottingham, Birmingham and Bristol as well as large and small towns like Swindon, Reading and Ipswich, Grantham, Thetford and Maidstone.
These areas will share in £40m start up funding to support infrastructure, unlock sites for new housing and to assess and mitigate environmental impacts. This will make them more attractive for business investment and help young people who want to stay in their home town to find a home.
The initiative is a crucial part of delivering an increase in house building in England in response to economist Kate Barker’s review of housing supply which found that over the last 30 years house building rates have halved whereas over the same period demand for new homes has increased by a third.
Yvette Cooper said: “If we don’t build more homes less than a third of today’s ten year olds will be able to afford a place of their own in twenty years time. Helping our towns and cities that want to grow can make substantial difference in delivering the new homes we need.”
Martin Wade, director at Mortgage Options, commented: “Anything that helps the housing market become more liquid at the lower market is a good move. Whenever demand outstrips supply in any commodity you will always see price inflation. Consequently any initiative by the government to encourage new development will go some way to ease the pressure.”
