Building a better future

Last week the prime minister, the deputy prime minister and I launched this government’s housing strategy for the future - Laying the foundations. The name is apt. For too long, short-term thinking and quick fixes have dominated the housing agenda. Now, for the first time, the measures announced will establish the basis for a successful housing market for decades to come.

The problems with the current housing system are clear. Lenders are not lending, builders are not building and buyers are not able to buy.

We are addressing all these problems, with one of the central goals being achieving longer term stability in the housing market.

We have announced plans for an industry-led mortgage indemnity scheme that will help up to 100,000 people buy the home of their dreams with just a 5 per cent deposit. Ownership, previously out of reach for many, will now be achievable. A typical purchaser of a new home currently needs a deposit of £40,000, this will reduce to £10,000. And because the house builder provides security for the loan as well as the government, this is all at a low risk to the taxpayer.

Building boost

We are helping the construction industry by launching a new £400 million ‘Get Britain building’ fund - to help get builders back on stalled sites and work on new homes back on track. These ‘shovel ready’ sites already have planning permission but this money will help get things moving again following the impact of the credit crunch.

And the government can help in more ways than just with finance. We are making more public land available, much of it on brownfield sites, with capacity for up to 100,000 new homes. Communities will have a new option to improve their local area by developing disused public land and buildings; members of the public will now be able to request the sale of public land and buildings by filling in a simple and user-friendly form instead of being forced to battle through a quagmire of bureaucratic obstruction and indifference.

We will look to support individual innovation too. Last year self-builders were the largest group of builders in the country. With the announcement of a £30 million fund to help those wanting to embark on these custom-build projects, we aim to help fuel that success. Self-build is a revolution in the making and I intend to match the success it has had overseas.

But we are also looking to give a helping hand to those who need the safety net of social housing and to ensure fairness in how this precious resource is used. This is not just about tenancy agreements. Shortly, I will publish our plans to tackle social housing tenants on higher incomes who could afford to rent, or even buy, in the private sector. My ‘pay to stay’ proposals will ensure these higher-earning tenants don’t benefit from the subsidised rent levels intended for those on much lower incomes, and either pay a rent closer to the market level or find alternative accommodation - freeing up the property for a family in need of a home.

All these elements of the housing strategy are, of course, complem-ented by the other action we are taking to get Britain building and ensure everyone has access to a roof over their heads.

Tackling homelessness

For example one of the reasons I got into politics in the first place was to help tackle the homelessness that, to our shame, still blights our country. I have already established the first ever cross-ministerial working group on homelessness, ensuring ministers from eight different departments have a responsibility to focus on this important issue. The No Second Night Out London pilot is already having an effect, but I want to see this standard extended beyond the capital to every street in the country. That’s why we’re working with councils to see how this innovative project - which focuses on helping those who find themselves sleeping on the streets of London for the first time - can be implemented in all our towns and cities, to ensure no one spends more than one night sleeping rough.

The new affordable rent model gives councils the ability to charge up to 80 per cent of local market rents, taking into account the needs of their new tenants and what they can afford - and only doing so to use the extra rent revenues to invest in more new housing. Alongside flexible tenancies, councils will now be able to manage their stock more effectively and help the millions of people on waiting lists.

Community involvement

And for the first time we will make it attractive for communities to approve new developments. Through the new homes bonus we are giving them a good reason to say yes, by matching the council tax raised on new homes for six years and extra funding for new affordable properties.

Our strategy is not just about building homes at any cost. We know that the quality, sustainability and design of housing is just as important as how many new homes are built and that getting this right is crucial if communities are going to support new homes.

The central involvement of both the prime minister and deputy prime minister in the strategy demonstrates just how committed this government is to ensuring a fair, stable and successful housing market for everyone. The measures announced last week will improve the lives of hundreds of thousands of people and open up the property ladder for the first time. This lays firm foundations for housing growth in this country and creates the right legacy for future generations. I look forward to seeing the first building site back at work thanks to the Get Britain building fund, the first buyers getting keys to their new build properties, and the first families moving into their new affordable homes.

Grant Shapps is minister for housing and MP for Welwyn Hatfield