The Conservative party unveiled plans on Monday for £5bn worth of funding to support housebuilding, £2bn of which was designed to provide 15,000 new homes on public land by 2020.
The accelerated construction fund, could be used to underwrite new developments on public land, and could mean the government taking on unsold properties, according to Sir Edward Lister, the chairman of the Homes and Communities Agency (HCA), which will oversee it.
“So it’s about us going to a housebuilder and instead of expecting the normal build-out rate of 50 units a year we’ll say, ‘We want you to build all 500 in one go and what we’ll do is guarantee to take them off you if you can’t find a buyer.’”
Property Week reported that the HCA would sell the homes on the open market or to private or social landlords, and that prices would be set before the government chose which schemes to back.
A £2bn fund to boost housebuilding could be used by the government to offer guarantees to developers that it will step in to take on properties that they are unable to sell.