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Spending review sees building bonanza

Spending review sees building bonanza

Despite widespread cuts, the chancellor George Osborne has pledged to fund housebuilding projects as part of his Autumn Statement.He has committed almost £9 billion to what has been described as the largest affordable housebuilding programme since the 1970s.Of the money, £2.3 billion will be paid directly to developers who will then create starter homes. These will then be sold to first-time buyers at a discount of 20 per cent for properties worth up to £250,000 (or £450,000 in London).There will also be £200 million to fund 10,000 new homes where tenants can live while paying reduced rent for five years as they save for a deposit. After this period, they will be given first refusal on whether to buy their home.In addition to this, £4.3 billion will be used to create 135,000 "Help to Buy: Shared Ownership" properties. These will be available for households earning less than £80,000 (or £90,000 in London). This scheme allows people to buy part of their home and pay rent on the remainder. There is also the option to buy an increased share at a later stage.Mr Osborne has also committed £400 million to building specially adapted homes for people with disabilities.This building initiative will be paid for with cuts in other areas, including a £12 billion reduction in the welfare bill, as well as increased tax receipts.The BBC’s political editor Laura Kuenssberg said: “Significant new spending on housebuilding, including billions going directly to housebuilders to encourage them to get spades into the ground, and retaining what many see as generous welfare payments to the older generations - inevitably means others will lose out.”Mr Osborne promised increased funding for transport infrastructure projects, but made £20 billion in cuts from government departments, including energy and climate change, business and transport. 

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