Jill Sherman, Whitehall Editor
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Yvette Cooper announced a huge £8 billion building programme yesterday to help first-time buyers and families on low incomes. An extra 210,000 affordable homes will be built over the next three years.
Council building will get a big boost and the Housing Minister unveiled a range of reforms to help young families get on the property ladder, including an equity scheme for those earning less than £60,000 a year.
Under the scheme the Government will give first-time buyers and key workers 17.5 per cent of the cost of a new home in return for a share in the profits when they sell.
The proposals in the Green Paper include grants for local authorities that provide detailed five-year building plans. They will also be allowed to borrow money from the private sector and keep rental income. Town halls will be encouraged to build council homes for the first time in nearly 30 years, and social rented housing is expected to increase by 50 per cent from 30,000 to 45,000 a year.
But housing bodies and council chiefs complained that the Government had not provided enough money and that they would need at least £11 billion to fund the programme. There were also concerns that the extra £300 million announced by Ms Cooper to kickstart infrastructure was not enough.
Sir Simon Milton, chairman of the Local Government Association, welcomed the new council powers that would help to cut waiting lists. But he added: “To turn rhetoric into reality, the LGA estimates that the Government needs to invest around £11.6 billion in new, affordable housing over the next three years, rather than the £8 billion announced.
“Councils will be far from convinced that enough money is being made available for infrastructure. Sufficient funding for the roads, schools and hospitals needed to turn desolate dormitories into places where people can live and work is vital.”
In a Commons statement Ms Cooper made clear that the proposals would include a mix of social, private and council housing and that there would be no return to 1950s-style high-rise blocks.
Although a few of the growth areas are expected to be in the North, there were fears that many of the extra homes would be built in parts of the country that are already crowded.
Altogether three million homes should be built by 2020, 60 per cent of them on brownfield land. Restrictions on greenbelt land will not be relaxed, although there could be more building on greenfield sites. About 200,000 homes will be built on surplus land owned by the MoD, NHS, councils and other agencies by 2016. But there were no signs that the Government was prepared to subsidise public sector land for housing associations or private developers, as many experts had demanded.
Housing associations argued that as they are expected to match any funding allocated by the Government they would not be able to raise £8 billion in the three years to 2010.
The National Housing Federation said: “Attempting to meet the Government’s house-building targets with this flawed financial modelling could bankrupt the housing association sector within five years, and could easily lead to us making the same mistakes of the 60s and 70s all over again.”
Private builders will be discouraged from building up land banks and will be required to put up most of the infrastructure for a site within three years of gaining planning permission. Their accounts will also be open to scrutiny to uncover any hidden banks of land.
Roger Humber, housing spokesman for the National Federation of Builders, said: “The gap between the Government’s aspiration for more homes and the actual delivery seems as wide as ever. Little new money and nothing to improve the delivery of land through the planning system has been provided – and without more land, output simply can’t increase.”
Ms Cooper said: “Taken together, these proposals represent not just the most significant programme of house-building for decades, but an ambitious, positive response to the growing challenges that many people face in their day-to-day lives.”
Alan Ritchie, general secretary of Ucatt, the building workers’ union, said: “The Government’s commitment to build a far higher number of affordable homes is warmly welcomed and is long overdue. Hundreds of thousands of families in dire housing need will be relieved.”
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Building on flood plains can be successfull with correct design and materials. Homes/Shops/Offices built using ICF / Insulated Concrete Formwork are flood resistant as standard and can also be built to be 100% waterproof quickly and cheaply unlike any other form of construction in general use. Housing on stilts is often mentioned but our culture is not used to this concept. However we could build 'Traditional' looking homes that can cope with the problem of flooding with little change in building practices. What does need to change is our approach to construction methods and materials. www.rewardwalls.co.uk
John Shelley, Stranraer, Wigtownshire,Scotland
Building on the foodplain?
OK ...IF certain conditions are met.
1st: that adequate flood management measures are in place. The definition of "adequate" will have to include and account for predicted sea-level rises and increase of extremes in weather conditions. Ie not just based on present dangers.
2nd That the new build and the flood defences provided will not damage other connected areas putting them at greater risk.
General suggestions. 1. Houses shops built in at risk areas should by law be built on stilts.
2. If not built on stilts, the ground floor should be "water-sealed" by having doors and windows designed to keep flood water out. And sealant for the brickwork.This would clearly involve greater expense, but worth it.
3.Alternatively. Ground floors should be "water-sealed", with entry doors on first floor, this requiring steps. A certain inconvenience for handicapped people.
Practical?
john abrami, rochester, kent
Shoudn't this read.....'It's boom time for migrant Polish builders'. That would be closer to the truth.
Judy , Liverpool, england
It would seem that this house building programme will coincide with the Olympic construction programme. Does anyone know where you find a builder, plumber, carpenter etc etc NOW? Add in the work now needed in the flooded counties and you realise that this government really does live on another planet. Yet another great Labour initiative unlikely to reach fulfilment.
Richard, Newcastle,
The £8 billion is simply to subsidise the house building and is reported to be inadequate. The extra £300 million for infrastructure would build a single bypass, for example, around Harlow.
We need to invest seriously if we want sustainable communities.
We have a choice of building hundreds of thousands of homes on the cheap and building problems for future generations or tackling the structural problems of housing demand and infrastructure.
Who wants a house without a decent transport system, a hospital, schools, colleges, doctors surgery, dentist, shops and some green space.
But are we the taxpayers prepared to pay the price for a growing population (caused by us living longer) and lower occupancy rates (caused by family breakdown)?
We will pay in taxes now or social breakdown in the future unless we choose to change direction.
Nigel Clark, Hunsdon, Herts,
Fudging the market is only going to prolong the housing boom. Brown is showing is corporate socialist credentials. This is a policy of the 70s not one for 2007. Exactly who is going to pay to subsidise housing for 'key workers' ? And those who are caught in the low income trap and are not key workers, how is this fair to them. Let the market correct itself, pay 'key workers' the wages they need to afford housing and don't subsidise. Oops, the unions have vetoed that haven't they. We can't introduce regional pay bargaining!
Neil, London, UK
What low cost housing? All the new buid developments in my area have been massively more expensive than any existing properties... New build does not equal cheaper
Oh, and these eco-houses are gonna be £40,000 more expensive on top of that too
Jack, london,
To reduce fossil fuel usage, all new buildings - and especially homes - should be required under planning law to include roof solar panels. The extra cost would be proportionally small and the saving in running cost would be significant.
John Claxton, Portishead, UK
Nice to know that public money isn't being spent on such things as flood defences then...
Pete Balchin, Bristol, uk
This will push up prices for first time buyers by 17.5% - well done Gordon Brown - own goal again!
Peter, London,
This is clearly more about shifting ownership of houses back to government. If Gordon Brown wanted to improve affordability, he should promote the building of more market price houses, not continue to reduce supply by taking half the houses away from developers for "social housing" in return for planning gain. This reduction in supply of market price houses necessarily pushes prices up by not fulfilling demand.
Using government owned land for developments will no doubt raise a lot of money by selling to developers, with the condition that say half the houses will be "social houses". These will probably be the ONLY pieces of land available to develop on if Planning Gain Supplement does come in, which in any event is really an indirect tax on the house buyer. Personally, I think Brown is using PGS as a tool to persuade developers to build now, before PGS does come in, which perhaps will never happen
Phillip Lucas, Warlingham, Surrey
Jill,
British Land shares down 2.8% today!!
Where is this bonanza you are talking about??
Jeremy Bush, Camden,
Why don'y we build a "palm island" or a "world island" off the coast like they have done off the coast of Dubai.
Places like Blackpool and Filey could be revitalised by such a development which could be allowed subject to "affordable housing" being built on 1/2 the plots.
Land off the Thames estuary would also be idea. The Islands and development can actually increase plant and animal diversity - and could be incorporated with wind farm energy and the like.
We would then not have to build on greenbelt lands.
The Dutch have been reclaiming land from the sea for years.
Richard Garland, Whitefield, Manchester
Why is no one in government talking about what the sustainable population of the UK is? We wouldn't be having this discussion about a lack of housing if the government hadn't allowed millions of immigrants to come into the country over the last ten years... a policy that did not appear in their manifesto and for which they have never received a democratic mandate.
It is clear that it not sustainable to have an ever increasing population... our transport system is creaking at the seams, our public services are struggling to cope with the demands placed upon them and society is becoming increasingly fragmented... politicians may like to talk about common British values that we all hold, but it is a myth.
Andrew Brown, Derby , UK
Its good news, but please let them look like homes and not like boxes, hopefully these homes will have some verandas and or even a small garden. Will the costs remain as quoted or will this again exceed its time scale and budget. Maybe its time to be stricter on imigration, because if there is already a shortage of housing how can the UK keep on growing in numbers.
Mark Harris, Swansea, Wales
Last time they were asked the government said that they had no figure in mind for the optimium population for the country when deciding on immigration quotas.
Perhaps they should make their minds up before most of us are living under water.
Brian Gilbert, Hampton, Middx