Government Pledge to support Housing Market and funding for the SME market
Prime Minister at the Conservative Party Conference, has pledged that her Government will do more to support the housing market. The state, she said, must get "back in the business" of building subsidised rented homes for those not able to buy.
The government announced a £2.5m boost to help speed up the delivery of over 155,000 new homes in English garden towns. Wolsey anticipates this intervention will be a boost to the housebuilding sector overall and lead to an increased flow significant private investment into a very hungry private residential development housing market.
The government has also announced it will invest a further £10bn in the Help to Buy equity loan scheme. It is expected that the new funding will assist around 135,000 more people to buy homes over the next four years, bringing the total number of households across England helped by the scheme to around 360,000. Figures have revealed that to date, 81% of home purchases using the equity loan scheme have been made by first-time buyers. For clients of Wolsey it should be seen as very positive news that the Government is committed to supporting the Help to Buy scheme through to 2021.
Wolsey continues to remain concerned at the barriers SME developers continue to face to undertake and thus grow their business. Whilst Wolsey supports the sector with funding, reducing the costs of gaining sites with planning permissions has to remain a key focus for the sector. It is fundamental to the long term stability of the sector and delivery of supply that SME developers are encouraged and can create sensible profits for the risks being undertaken.