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In January Prime Minister David Cameron announced that the government will commission thousands of new affordable housing. He has pledged £1.2 billion of funding over the next 5 years towards the building of 30,000 affordable ‘starter homes’ on underused brownfield land. This landmark new policy will mean that the government will fast-track the building of homes on publicly owned land. Such an approach has not been used on such a vast scale since Margret Thatcher and Michael Hesteltine started on the Docklands.
This groundbreaking policy enable smaller building companies, that until now would have been unable to take on big projects, to start working on building on government sites with planning permission already in place.
The first wave of this project will begin in 2016 outside London, building 13,000 new homes, of which 40% will be affordable starter homes. A Starter home is available to buyers under 40 years old and entitles them to a minimum of a 20% discount on market value.
This exciting new announcement should be the start of a boom in building industry. With thousands more homes being built across the country, the need for new windows, doors, and obviously countless other building materials will be vastly increased. It should also increase the level of employment in areas close to the developments, with the increased need for skilled workers as well as labourers. Home ownership is at its lowest level in a generation; in fact during the last 5 years the fewest number of new homes have been built compared with any previous government since the 1920’s.
To read the full press release from the government on The Prime Minister’s announcement on the affordable home scheme click here.
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