Deputy PM calls for new green towns to solve housing crisis

Deputy PM Nick Clegg is emphasising the need to create a new generation of towns and garden cities to ease Britain's growing housing crisis.

Mr Clegg has warned that unless radical action is taken to improve house building in this country, young people's dreams of owning their own homes will be dashed.

The Government is making available £225m in funding to reconvene a series of major local housing projects which have halted due to lack of investment.

The schemes range in size from 4,000 units to 9,500 and will provide up to 48,600 new homes.

Mr Clegg's comments come just days after PM David Cameron pledged to cut red tape in the planning process, in order to stimulate economic growth.

John Cridland, CBI Director-General, said:

“Building houses is one of the quickest ways to boost jobs and growth, and by focusing on stalled sites, the Government is rightly reaching for quick wins.

“The £225m being made available to leverage private investment should inject confidence into the sector by offering some welcome respite for house-builders struggling to fund major developments.