New £2.3bn housing infrastructure fund announced in Autumn Statement

Helen Cahill
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The government has promised to raise living standards (Source: Getty)

A new £2.3bn housing infrastructure fund has been announced in the Autumn Statement to unlock new land for house building in high demand areas.

The chancellor Philip Hammond also said there would be a £1.4bn fund to be spent on building 40,000 new homes. He announced a £3bn homebuilders' fund for 200,000 new homes and £2bn to build on public sector land.

Read more: £2bn boost for UK R&D confirmed in Autumn Statement

Hammond said: "For too many the goal of home-ownership remains out of reach."

He said the challenge of affordable housing was not a new challenge, but that it was a growing one.

Mark Hayward, managing director of the National Association of Estate Agents (NAEA), said: “We welcome the news that the chancellor is set to announce a £1.4 billion funding injection for house building.

“However, the creation of 40,000 new homes that this new funding is expected to deliver is still painfully short of the number of affordable homes we need to solve the housing crisis and get first time buyers on the housing ladder."

Mark Farmer, chief executive of Cast Consultancy, said: It is good to see new housing and infrastructure receiving the focus so desperately needed in the Autumn Statement.

Read more: London is getting £3.15bn of funding for 90,000 affordable homes

"A tenure diverse housing market including affordable rent and shared ownership is crucial to underpinning more stable long term demand in construction and also can act as a catalyst for investment in innovation in house building which ultimately will reduce delivery costs. I now await the Housing White Paper with interest to understand how some of these broader issues are addressed in connection with the chancellor's announcements today."

Frank Pennal, managing director of Close Brothers Property Finance, said: “Today’s announcement will be welcomed by small housebuilders across the UK as they look for relief amid their struggle to overcome the challenges of the current planning system, industry skills shortages and uncertainty over how Brexit negotiations will impact their business.

"The £2.3bn housing infrastructure fund to deliver 100,000 new homes in areas of high demand is vital for the confidence and long-term future of the sector, and in turn, prospective homeowners."

Hammond also said today that he will be setting aside £3.15bn to provide London with 90,000 affordable homes.

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