Large-scale Investments to Tackle Chronic Housing Shortage

As housing demand outstrips supply, the UK faces a chronic housing shortage. Consequently, the government has injected £20bn into affordable housing. This is the single, biggest investment in new homes, in England’s history. The funding, aims to tackle the issue of housing shortages.

Official statistics show nearly a quarter of a million homes were delivered in 2019. A record-breaking level since 1987. According to the statistics, 2020 marks the 7th consecutive year home delivery continues to rise. This is evident data received from the British Property Federation (BPF). Reporting a 42% increase in the number of completed Build to Rent (BTR) homes.

Economic Packages to Revive Homebuilding

To support home building across the UK, £900m has been made available for local growth projects. In addition, a £96m investment will accelerate growth in town centres. The Towns Fund aims to revitalise over 100 town centres and high streets in England.

The government has invested a further £12bn into the Affordable Homes Programme (2021-2026). This is the largest investment in affordable housing in a decade. Initially launched in 2016. The extension will provide up to 180,000 new affordable homes for ownership and rent. Unlocking an astonishing £38bn in public and private investment. Robert Jenrick, Housing Secretary, reports the scheme will include 1500-home pilot of ‘First Homes’. First-time buyers may be eligible for a 30% discount on these homes. The initiative aims to end the housing crisis and tackle homelessness.

The £400m Brownfield Land Fund, will support an additional 24,000 homes. The fund aims to speed up project delivery. The investment has been split across the regions:

Greater Manchester Combined Authority – £80m

Liverpool City Region – £45m

North of Tyne Combined Authority – £24m

Sheffield City Region – £40m

Tees Valley Combined Authority – £19m

West Yorkshire Combined Authority – £67m

West Midlands Combined Authority – £84m

The £20bn investment, includes the National Home Building Fund investing £7.1bn over 4 years to support developers. The fund started in 2017 and continues to support developers with new builds. The £450m boost will deliver a further 7200 homes. Alongside the benefits, tens of thousands of jobs will be created. Boosting economies across the country.

Supporting Regeneration Through Redevelopment of Vacant Buildings

Boris Johnson announced a change to planning permissions. The new rules will prevent future delays in large-scale projects. Therefore, delivering homes at a faster rate.

‘Project Speed’ will provide greater freedom for building and land in town centres. Under the new regulations, builders no longer need a normal planning permission. This is applicable if vacant residential and commercial buildings are demolished and rebuilt as homes. The project supports regeneration through redevelopment of redundant buildings. It will also reduce the pressure to build on greenfield land.

With the implementation of a fast track approval process, property owners will be able to build additional space above their properties. This is subject to neighbour consultation. The new scheme hopes to boost housing density. Project speed will accelerate planning permission by removing inefficiencies, allowing more dynamic project development.

Delivering an Infrastructure Revolution

Fairer, Faster, Greener

The long-awaited National Infrastructure Strategy, outlines the £100bn investment. The strategy aims to support the economic recovery from the pandemic. With a strong focus on infrastructure and construction and aiming to achieve net zero emissions by 2050. The government is encouraging local authorities to take immediate action to preserve construction jobs, by progressing with funded projects.

“All nations and regions of the UK have benefited from our unprecedented £200bn Covid support package. After a difficult year for this country, this spending review will help us build back better. By investing over £600bn across the UK during the next five years.” – Rishi Sunak