Chancellor Rishi Sunak has pledged to provide £2.2bn of funding for housebuilders.
The majority of this funding will be in the form of loan finance for house builders, including those using modern methods of construction.
A further £100m will fund authorities in 2021/22 to support housebuilding and regeneration – including for serviced plots for self and custom builders.
The announcement was made in yesterday’s Spending Review.
In response, the National and Custom and Self Build Association (NaCSBA), said: “No details have been released as yet as to the format or timescale of the Help to Build scheme, but NaCSBA looks forwards to working with the Ministry of Housing, Communities and Local Government to shape the parameters of the programme.”
This funding forms part of £7.1bn pledged via the “National Home Building Fund”, a title being used for government housing investment.
Another part of the fund is £4.8bn of capital grant funding previously announced for land remediation, infrastructure and land assembly.
Sunak also announced that £12.2bn is going towards the Affordable Homes Programme over six years, which provides grant funding to support developing affordable housing.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Hopefully, the funds will be used to improve the pace of supply of affordable new housing for sale and to rent in places of most need.
“Further support for first-time buyers when the stamp duty concession ends and Help to Buy Part 2 begins in the spring, are other areas which could help keep transaction numbers up.
“Their value to the wider economic recovery, particularly employment, has proved so crucial in recent months.
“Stimulation of infrastructure expenditure would be most welcome too as these projects are often the cause of delays in the delivery of housing.”
Yesterday saw the government publish the National Infrastructure Strategy and Green Book Review.
As part of this the government is launching a National Infrastructure Bank next spring, to direct billions of pounds into major capital projects.
Melanie Leech, chief executive, British Property Federation, said: “New infrastructure investment to connect and modernise places, while delivering on the government’s Net Zero Carbon commitments, will be fundamental to UK recovery, and the announcement of a new National Infrastructure Bank suggests the government understands the need for a long-term strategy and commitment to attract private sector investment alongside public spending.
“The outcome of the Green Book Review, which sets out changes to how government appraises and evaluates spending decisions, should also mean the private sector is able to partner more effectively with public investment to deliver wider economic, social and environmental benefits in an inclusive way across the country.”
This post has originally been featured in Property Wire.