The Government are proposing to introduce a new build indemnity scheme to boost the housebuilding industry by reducing the deposit required by first time buyers. They are also planning to double the right to buy discount, with a commitment to build a new home for every property sold under Right to Buy.
The Government's new strategy will not meet the demand for increased new social housebuilding as there are currently 1.7 million people on housing waiting lists. The Government estimates that their initiative will create an additional 3,200 affordable homes.
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Last year as part of the Comprehensive Spending Review the Conservative-led Government cut spending on new build social housing by 70% and the Government’s plans are likely to restore barely 10% of that funding.
George Guy, Acting General Secretary of UCATT, said: "The housing crisis is not going to be resolved until the Government builds sufficient social housing to meet the needs of the population. By building new social housing you provide jobs for construction workers and help kick start the industry."
Mr Guy, added: "Introducing mortgage indemnity schemes and increasing Right to Buy discounts are at best window dressing and at worst could be creating further long-term problems in a housing market which remains overly slanted towards private occupiers."
(CD)
