Member Article

£10bn guarantee scheme for home building

George Osborne has revealed plans to use low interest rates to underwrite construction projects.

Speaking to the BBC, Mr Osborne said the legislation would provide measures to free up the planning process from constraints, and introduce a £10bn guarantee scheme for the building of new homes.

Richard Threlfall, UK head of Infrastructure, Building and Construction at KPMG, commented: “The industry will welcome the Government’s recognition that short-term economic stimulus is best driven by boosting the housing market.

“£10bn of guarantees for the debt of housing associations and private sector developers should make a material difference, provided delays in planning are not allowed to get in the way.

“Investment in the UK’s infrastructure is critical to our long-term economic competitiveness. But in the short-term we need an antidote to our economic woes. Investment in our housing offers the fastest-acting painkiller for the headache of a sluggish economy.”

This was posted in Bdaily's Members' News section by Tom Keighley .