Chancellor launches ?2.3bn Housing Infrastructure Fund

Speaking in the House of Commons, chancellor Philip Hammond said the government would ?prioritise high-value investment on infrastructure and innovation?.

?One of the biggest objections to housing development ? is often the impact on local infrastructure,? he added.

?So we will focus local infrastructure investment to unlock land for housing with a new ?2.3bn Housing Infrastructure Fund to deliver infrastructure for up to 100,000 new homes in areas of high demand.?

The fund, which runs to 2020-21, was announced in the Autumn Statement as part of a series of measures to boost UK infrastructure. Mr Hammond said lack of affordable housing impacted on the UK?s productivity, making it an ?urgent? problem.

Spending will be allocated to local authorities ?on a competitive basis? to unlock new private house building.

The government will also look at how transport funding can support housing growth.

Paul Hackett, chief executive of Amicus Horizon and deputy chair of the G15, said: ?Getting the infrastructure in place to enable housing to happen is absolutely key. It?s one of the viability issues around new development, particularly on larger sites.

?Using public money as gap funding to enable development to happen at scale by putting in infrastructure such as roads and drainage, broadband and others, is a key enabler.?

David Orr, chief executive at the National Housing Federation, said the government was ?absolutely right to see housing infrastructure as critical to improving the nation?s productivity?.

Terrie Alafat, chief executive of the Chartered Institute of Housing, said: ?Given the scale of our housing crisis the central focus on housing in the government?s Autumn Statement today is a significant step in the right direction.?

Trudi Elliott, chief executive of the Royal Town planning Institute applauded Mr Hammond?s statements on infrastructure-led investment.

?It is overdue and we need it urgently,? she added.

?