HBF welcomes today’s announcement by the Prime Minister that includes a doubling of the number of new homes built as part of the ‘Kickstart’ initiative to open up mothballed sites. The reallocation of Government money for housing is a clear and welcome recognition of the importance of the need to maintain housing provision and of house building to the economy. The wider economic benefits of maintaining supply are quite clear, with an estimated 1.5 jobs created for each unit built. However, a sustainable recovery in house building, that will see employment maintained is dependent upon a restoration of some sensible levels of mortgage lending, and some relaxation of mortgage terms such as loan to value ratios. The Government must use the influence it now has with the banks to ensure lending returns quickly. Speaking this afternoon, Stewart Baseley, executive chairman of the HBF said “Today’s announcement is welcome and could be a real boost for potential home owners, the industry and the wider economy, and we must all now work to ensure this money is allocated as quickly as possible. However, ensuring the banks restore some sensible levels of lending is paramount if any boost is to be sustainable.” - Ends – For media enquiries, or to arrange an interview, please contact Steve Turner tel: 0207 960 1606 email: steve.turner@hbf.co.uk Notes to Editors: 1. The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk 2. Summary of today’s announcement £1.5 billion of additional funds, for: - 20,000 additional new Affordable Homes - 10,000 additional new private homes for sale TOTAL: 30,000 To be delivered as: 12,500 RSL Affordable Housing 3,000 council building 13,000 new homes Kickstart, of which: - 4,000 Affordable - 9,000 private for sale (doubling original Kickstart programme) 1,250 new homes HCA public sector land, of which - 500 Affordable - 750 private for sale TOTAL: 30,000 (actually 29,750) Explanation An additional £1.5bn will be spent over the next 2 years to deliver 20,000 new homes, of which 13,450 will be social rented and 6,550 will be Low Cost Homeownership. This includes an 3,000 new council built houses It will also unlock the building of around 10,000 additional private homes for sale on mixed communities 10,000 of these additional homes will start construction this financial year] In total we will deliver 55,500 social or affordable homes this year (09/10) and 56,450 next year (10/11) – 110,000 over two years (quoted by PM) This investment will create 45,000 jobs in the construction and related sectors. The investment package will be delivered by: Expanding the programme announced in Budget to enable Local Authorities to deliver around 3,000 new Council social rented houses. Expanding the existing affordable housing programme to enable RSLs to deliver up to an additional 12,500 affordable homes Expanding the Kickstart Housing Delivery programme (again, announced in the Budget) that aims to unlock stalled housing sites, with the aim of delivering an additional 13,000 homes, of which 4,000 will be affordable and 9,000 private sale. Investing in the development of public sector land owned by the HCA to deliver around 1,250 units of which 500 will be affordable and 750 private sale. 3. Previous Government announcements include - Stock purchase, 9,000 homes; HomeBuy Direct (target) 18,000; Kickstart, announced in budget originally 9,000.
