Philip Hammond unveils £5bn housebuilding stimulus package

Helen Cahill
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Philip Hammond's First Day As Chancellor Of The Exchequer
Hammond will be encouraging new developers and housebuilders using offsite construction (Source: Getty)

Chancellor Philip Hammond has announced a £5bn stimulus package for housebuilders, including a £3bn fund to help build 25,000 homes during this parliament.

The fund will give loans to small and medium sized housebuilders and those using innovative building methods such as offsite construction. It will also provide funding for infrastructure.

Read more: London has fallen out of the top three UK regions for house price growth

A further £2bn will be spent on using public land to encourage new developers to build at a faster rate than traditional housebuilders. This investment is expected to create 15,000 homes by the end of this parliament using surplus public land.

Hammond said: "There has been a housing shortage in this country for decades, and this government is determined to take action to tackle it.

"We'll use all the tools at our disposal to accelerate housebuilding and ensure that over time, housing becomes more affordable, that is why we are committing £2bn of additional investment towards this."

In his speech at the Conservative party conference, communities secretary Sajid Javid will say that addressing the housing shortfall is a "moral duty" and one "that falls on all of us".

House prices grew up 0.3 per cent in September, according to Nationwide's house price index, following a lull in house prices that came immediately after the Brexit vote.

House prices after Brexit: a short history

  1. In June, RICS predicted house prices would drop for the first time since 2012
  2. Rightmove report house prices fell by 0.2 per cent in June
  3. Brexit vote, everyone wants to know what will happen to house prices, so we asked the experts
  4. FTSE 100-listed housebuilder shares take a tumble
  5. Data from Halifax shows house prices fell after the Brexit vote
  6. Mortgage approvals fell to an 18-month low in July
  7. Nationwide reports house prices went up again in August
  8. Rightmove reports house prices rebounded in September after the Brexit vote

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