PM turns to planning to fix house building crash
The prime minister will today unveil a series of reforms to boost house building, including changes to planning rules and £10 billion of government guarantees to support lending to developers.
As revealed by Inside Housing yesterday, the changes will include a temporary amendment to section 106 rules that will mean developers no longer have to provide affordable housing if they are building homes for private rent.
The Treasury is believed to have identified around £300 million from departmental underspends that will be used to build more affordable housing, replacing the homes lost as a result of the section 106 changes.
A guarantee to support £10 billion of lending to housing associations is also expected today.
David Cameron and his deputy, Nick Clegg, will also announce the government is extending the first buy scheme to 16,500 first-time buyers. This gives eligible buyers an equity loan worth 20 per cent of the value of the property to use as a deposit.
The planning changes will also make it easier for home owners to extend their properties. Rules governing ‘permitted development rights’ will be eased on a temporary basis to allow larger single-storey extensions to be built without planning permission.
There are also measures to make it easier for shops and offices to extend without planning permission.
The prime minister and deputy prime minister will say: ‘This government means business in delivering plans to help people, build new homes and kick-start the economy.
‘We’re determined to cut through the bureaucracy that holds us back.
‘That starts with getting the planners off our backs. Getting behind the businesses that have the ambition to expand. And meeting the aspirations of families that want to buy or improve a home.’
