The Government is pledging £5 billion of public money to increase housebuilding after Theresa May called for an end to the UK’s “homes deficit”.
Ministers will set aside £2 billion of new public borrowing to fund an Accelerated Construction Scheme to make public land with planning permission available to builders.
Meanwhile a £3 billion homebuilding fund using previously-announced cash will provide loans to stimulate new building projects where finances are tight.
Chancellor Philip Hammond and Communities Secretary Sajid Javid set out details of the funds at the Conservative party conference in Birmingham on Monday.
But Housing Minister Gavin Barwell on Sunday signaled that council housing was unlikely to be a major beneficiary of the cash. He told fringe meeting at the conference that Labour’s policy of building more council homes would increase the gap between people who owned homes and those who didn’t.
Ministers also unveiled new reforms to the planning system, with a “de facto” presumption in favour of brownfield housebuilding to drive up density and provide a targeted 21,000 homes by 2021.