New Delhi: The UK government announced a new £3 billion support package for housebuilders, designed to stimulate housing construction and boost economic growth as part of the Budget. The package which will provide builders with easier access to loans from banks and lenders, according to the Ministry of Housing, Communities and Local Government, a UK government release stated.
These guarantees are intended to reduce risk for lenders and encourage them to increase the amount of credit available to housebuilders, the release added. The government contends that access to credit is a major obstacle to growth in the housing sector and that by guaranteeing more lending, it can stimulate further housebuilding. It is estimated that the increase in guarantees will support the construction of more than 20,000 new homes.
The guarantees are now available, part of a new support package confirmed Thursday by the Housing Minister. According to the press release, the government’s efforts to stimulate housing development go beyond financial guarantees, with an array of initiatives already in place. An overhaul of the planning system through a consultation on reforms to the National Planning Policy Framework, including new mandatory housebuilding targets for councils has been announced alongside the launch of a New Homes Accelerator group to address the issue of thousands of new homes stuck in the planning system or partially built.
In addition, the government has awarded £68 million to 54 local councils to unlock housing on brownfield sites and £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.