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Government Prepares Multi-Billion Pound Housing Stimulus

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The government is readying a post-Brexit vote housing package that will provide billions of pounds to residential developers in an attempt to abate the housing crisis and stimulate the flagging economy.

It is understood that the new multi-billion pound fund, administered through the Homes and Communities Agency (HCA), will back developers from all parts of the industry, including the private rented sector (PRS).

http://m.propertyweek.com/5084708.article?mobilesite=enabled

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More privatise the profits socialise the losses. With a huge bureaucracy to administer the guarantees and loans and bailouts.

We have been trying this stuff for 20 years - developers will never deliver the housing we need.

Don't you miss the gold old days - when the government directly commissioned housing rather than outsourcing the job. It actually worked,

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The government should stop giving endless 'carrots' to developers, and start applying a few 'sticks'.

A tax of 2% per annum on the value of developers' land banks would be a good start.

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But .... there are no end of developers ready, willing and able to build small (10 -30 unit) estates round my way. Planning is the problem - even if they get it, it will have taken several years, public meetings, consultations etc.

Where is the land going to come from for these smaller developers?

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The government is readying a post-Brexit vote housing package that will provide billions of pounds to residential developers in an attempt to abate the housing crisis and stimulate the flagging economy.

It is understood that the new multi-billion pound fund, administered through the Homes and Communities Agency (HCA), will back developers from all parts of the industry, including the private rented sector (PRS).

http://m.propertyweek.com/5084708.article?mobilesite=enabled

Hope this is a plan to built more houses rather than a plan to try and feed the monster House price inflation. The Government need to curb HP Inflation as the doubling of the housing benefits is only going to get worse if they don't.

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Hope this is a plan to built more houses rather than a plan to try and feed the monster House price inflation. The Government need to curb HP Inflation as the doubling of the housing benefits is only going to get worse if they don't.

Seems to me a plan to give their builder mates more cash :lol:

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Free market tories....what a f**king joke.

I wish I'd voted for Gordon Brown now

With a bit of luck you'll have the option to vote for Jeremy Corbyn in a bit under four years.

Here's hoping that Smith noddy (the one who's pretending he's not NuLabour) doesn't get in.

Edited by Bruce Banner

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Hope this is a plan to built more houses rather than a plan to try and feed the monster House price inflation. The Government need to curb HP Inflation as the doubling of the housing benefits is only going to get worse if they don't.

The doubling of HB .. is that rents or people?

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The system requires the total value of the property inventory to keep increasing. To that end it should make little difference whether that value is made up of a few high priced houses or lots of cheap ones.

The question is, can this total value be maintained? Subsidising landlords is becoming increasingly untenable and there is now a serious will to reduce immigration. Just possibly someone has run some model and concluded the financial system will be better off with a larger number of cheap houses. Certainly it will give the foreign "investors" more to buy with their cheap pounds.

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This really is tragic, can no-one in government actually see how f**ked up their entire plan is? How much failure do you need before the answer presents itself? Start kicking the developers, not giving them more tax money , if they won't build then issue some kind of "use it or lose it" rule. If that doesn't work apply a tax on the land itself.I think we'd soon start seeing some building when they see the land isn't the real cash cow, it is "developing" it...crazy I know. Let us get back to capitalism, if they can't make a profit then either they go bust (and another company replaces them) or land prices start dropping (and therefore property prices too). Just how thick do you have to be to be housing minister?

Edited by SillyBilly

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With a bit of luck you'll have the option to vote for Jeremy Corbyn in a bit under four years.

Here's hoping that Smith noddy (the one who's pretending he's not NuLabour) doesn't get in.

I heard Smith was a shortarse. Does he look it on telly?

Being a shortarse is a sure way to be unelectable in Blighty.

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One thing is certain, interference in the market to boost supply is better than interference to boost demand , which is what we have had until now with terrible consequences for the young and/or poor.

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With a bit of luck you'll have the option to vote for Jeremy Corbyn in a bit under four years.

Here's hoping that Smith noddy (the one who's pretending he's not NuLabour) doesn't get in.

I don't think anyone is convinced by Smith (who?).

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Ok, you all can go ahead and slate me for falling into a wishful thinking trap here, but I think a careful reading of the article shows the Government is aiming for a big, quick bump in supply and it won't just be a case of handouts for developers. Here's the reasons why:

One, the article keeps going on about support for modular construction, which gets stuff built faster than the traditional on-site build followed by developers.

Two, it mentions money will go to the private rented sector which means the emerging professional build-to-rent sector. Think lots of flats in tower blocks in city locations that will bump up rental supply as soon as they're completed.

Three, the bits about the government understanding the need to diversify supply and how the money is designed to support the assembly of complex sites. I think this is a bit of a handout to developers in a bid to stop them mothballing sites - probably this is the government saying to them "Here's some cash to keep going with getting your sites ready and we will make sure you have end customers, whether that's private buyers, social housing or the private rented sector."

Alarm bells certainly ring given Hammond's background as a builder/developer, but there's more than one interpretation of how this affects his thinking. Charitably, you could argue that because he's seen two boom-bust cycles he knows how developers think and he will know the danger is they will sit on projects. You could even argue that having been in competition with the big boys he may not be especially keen to do them any favours.

This stimulus may solve one of the barriers to delivering build-to-rent, which is that the way they are funded makes it difficult for them outbid private-sale driven developers for land. The latter can finance projects by forward sales but the former has to wait til their properties are completed and let out to see any money come in. So if the Government is willing to lend money as upfront financing to build-to-rent that will help - it could be a sort of bailout to developers in that it allows them to sell off parcels of land to build-to-rent to balance the risk of delivering the whole development themselves.

Finally, of course all this new supply won't be the affordable, sizeable homes of everyone's dreams and of course the banks will make a mint off the new money and new building. But I hope it is at least a new front in the blitzkrieg on the small-scale landlords/speculators who have cornered / driven up the price of the existing stock.

As Bland Unsight notes in his excellent book, "politicians don't solve problems, they pick winners". Over the year or so that BTLers have been throwing their toys out of the pram because Osborne decided they were now longer going to be the winners and are crowing because they're getting tea and biscuits with the housing minister, the professional build-to-rent sector and the institutional investors that back it have been cosying up to government. It looks like they will be Hammond's winners to me.

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If this is a supply side stimulus then great.

Land supply is fixed, you can't have a supply side stimulus.

Any extra money will just bid up the cost of development land, and that will push up the cost of houses.

If there are planning reforms, that would be a different story.

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Unfortunately neo liberal politicians don't represent people, they represent capital. Once you understand this you can explain very easily pretty much every dodgy decision they make. Neo liberals are in both main parties. That way they control politics - you can have democracy as long as you can't vote for anyone that dents their mates profits.

The obvious solution is to build council housing. Its actually the ONLY solution that has worked to dramatically increase supply. BUT it doesn't make capital more money - which is why Corbyn is so hated. Plus Corbyn wants peoples' QE and an end to the PFI gravy train that has robbed tax payers of £250 billion.

The neoliberals are hellbent on making sure this gravy train for rich vested interests never stops. Maintaining the ponzi housing bubble is no. 1 priority for them, not solving the housing crisis.

Edited by sikejsudjek

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