Further plans to help boost construction and the economy
The past week has seen the Government announce further plans that are aimed at providing a further boost for the construction industry. Their hope is that by introducing measures that will help stimulate and boost building projects, this will create 140,000 more construction jobs, leading to more money becoming available and more money for businesses. At the same time they are hoping to see the property development of 70,000 new homes which will also include a good proportion of affordable housing. The Government are planning to invest about £10 billion for new homes and £40 billion into large construction projects to improve the country’s infrastructure.
These plans are aimed at supporting property developers and businesses through help with funding but also by introducing new measures to make gaining the necessary planning permissions quicker and easier. Many property development projects that have been held up or abandoned due to planning restrictions may now be able to hit the start button. In addition the Government want to make changes to the size of extensions that can be added to existing homes without having to obtain planning permission. These changes basically involve doubling the size of an extension that can be added onto a property without the requirement for planning permission. These changes will probably be only for a limited time, but will greatly help homeowners and businesses who want to improve their properties.
What the Government is trying to achieve is to create a stronger economy whilst at the same time making it easier to build new homes, easier to obtain the finance to buy a new home and also make it much simpler and more appealing to extend your existing home. The measures to help achieve this include removing some of the restrictions that have caused the development of over 70,000 homes to stall. Property developers have abandoned projects that have become too costly due to the affordable housing requirements placed upon them. If a property developer can prove that the affordable housing requirements are responsible for making a housing construction project unviable, they may be able to get these requirements removed, making the project a viable one.
In addition the Government wants to build a further 15,000 affordable homes and also bring back into use a further 5,000 properties. They also want to create 5,000 more homes that would be made available for rental.
To help first time buyers the Government wants to extend the FirstBuy scheme by providing a further £280 million. This money will be used to help 16,500 first time buyers by providing them help with finding the deposit needed in order to purchase their first home.
A very important step is that the Government wants to provide guarantees of up to £40 billion for construction projects to improve infrastructure and a further £10 billion for the development of new homes. Improving infrastructure is crucial for a successful economy and this can be seen in countries such as China who have in recent years concentrated large sums of money to vastly improve its infrastructure whilst at the same time creating jobs and wealth. In addition Germany has also invested larger sums into its infrastructure when compared to other countries, being able to do so for a number of reasons the main one being they do not have such a large military budget.