Today the Chief Secretary to the Treasury, Danny Alexander, made announcements outlining more detail of the spending review, click here to view ( in particular p39-43)
The measures announced were:
£3.3bn of new funding for affordable housing over three years between 2015/16 and 2017/18 which will help support delivery of 165,000 new affordable homes in England. This investment is made up of £957million capital funding annually and £400million over two years launching a new Affordable Rent to Buy scheme.
Confirmation that social housing rents will rise by CPI+1% each year for next ten years.
£400million from the New Homes Bonus (consultation on the pooling mechanism to follow) will be placed into a new, annual Single Local Growth Fund of £2bn for Local Enterprise Partnership areas to support strategic housing and economic development priorities.
A target for central government to deliver at least £15billion of asset sales between 2015 and 2020 with at least £5billion coming from land and property. To support delivery of this target and improve the release of public land to the market, the Government will implement a series of policy changes, including;
a Right to Contest, which will give local communities and businesses the right to challenge the Government to release land where it is potentially surplus or redundant and can be put to better use. Landholders will be subject to ministerial scrutiny to prove where sites cannot be sold because they are vital for operational purposes;
a new Strategic Land Review, which will build on this right and invite input from industry and Local Authorities to help identify where further public sector land can be made surplus or redundant and sold to support construction and local growth;
radically overhauling land sales, by centralising disposals in the Homes and Communities Agency (HCA) to ensure land is released efficiently;
accountability for delivery through a new centralised role and greater levers for the Shareholder Executive (ShEx) and Government Property Unit (GPU) to hold departments to account on corporate asset and property disposals and rationalisation; and
improved incentives for central government departments to ensure efficient use of assets, including offering flexibility on when departments can spend asset sale proceeds.
Help to Buy Equity Loan: The Spending Round confirms that of the total £3.7 billion investment, £1.3 billion will be provided in 2015-16 to support the scheme in England. By 2015-16 it is expected that up to 74,000 new build sales will have been supported.
Help to Buy Mortgage Guarantee: available from January 2014. The Government will offer lenders the option to purchase a guarantee on mortgages on both new build and existing homes, where a borrower has a deposit of between 5 per cent and 20 per cent. This will encourage lenders to offer a greater number of mortgages to borrowers with small deposits. Subject to its final design, the mortgage guarantee will make up to £12 billion of government guarantees available, which is sufficient to support £130 billion of high loan-to-value mortgages.
The guarantee will only be available for the purchaser’s sole property. Lenders will need to collect a borrower declaration as part of the mortgage application.
Consultation on how to replace the current voluntary flood insurance scheme for high flood risk areas.
Restatement of Build to Rent.
Restatement of the £300million Care & Support Specialised Housing Fund.
Restatement of the commitment to reduce the regulatory burden and the ‘one in, two out’ policy for new regulations – progress reports will be published at Budget 2014 and Budget 2015.
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