The Prime Minister has announced that the government is to step in and directly commission thousands of new affordable homes.
In a radical new policy shift, not used on this scale since Thatcher and Heseltine started the Docklands, the government will directly commission the building of homes on publicly owned land. This will lead to quality homes built at a faster rate with smaller building firms – currently unable to take on big projects – able to get building on government sites where planning permission is already in place.
The first wave of up to 13,000 will start on 4 sites outside of London in 2016 – up to 40% of which will be affordable ‘starter’ homes. This approach will also be used in at the Old Oak Common site in north west London.
The government is also today announcing a £1.2bn starter home fund to prepare brownfield sites for new homes. This will fast-track the creation of at least 30,000 new starter homes and up to 30,000 market homes on 500 new sites by 2020 – helping deliver the commitment to create 200,000 starter homes over the next 5 years.
The new investment will help kick-start regeneration and secure planning permission in urban areas – renovating disused or under-occupied urban sites so builders can get to work without any delays.
Prime Minister David Cameron said: "This government was elected to deliver security and opportunity - whatever stage of life you’re at. Nothing is more important to achieving that than ensuring hard-working people can buy affordable homes.
"(The) package signals a huge shift in government policy. Nothing like this has been done on this scale in 3 decades – government rolling its sleeves up and directly getting homes built.
"Backed up with a further £1.2 billion to get homes built on brownfield sites, it shows we will do everything we can to get Britain building and let more people have the security that comes with a home of their own."
Currently the top 8 house builders provide 50% of new homes. The direct commissioning approach will support smaller builders and new entrants who are ready to build but lack the resources and access to land.
The pilot for direct commissioning on publicly owned land will start in 5 sites: Connaught Barracks in Dover; Northstowe in Cambridgeshire; Lower Graylingwell in Chichester; Daedelus on Waterfront in Gosport; and Old Oak Common in north west London.
