Housing: David Cameron vows to 'get Britain building'


David Cameron: ''We are determined...to get the market moving''

Buyers of new homes will be able to borrow up to 95% of their value as part of plans the government says will help get "Britain building again".

The mortgage indemnity scheme, in which the government will underwrite part of the risk to lenders, could help up to 100,000 people in England.

It is part of a wider strategy to build more homes and boost home ownership.

Labour said it was "too little, too late" and did not compensate for earlier cuts to housing budgets.

Building more homes is one of the government's economic priorities, with the number of new ones being built at its lowest level since World War II, and with rents and prices remaining high while mortgage lending is restricted.

Just 121,200 new homes were made available in 2010-11, half of what ministers say are needed.

At the heart of the coalition's approach is an indemnity scheme which will enable lenders to provide mortgages of up to 95% of the value of newly built homes to would-be buyers - most of whom are expected to be first-time purchasers - supported by government guarantees.


  • Mortgages of up to 95% of the value of new homes to be offered with government underwriting part of the risk
  • £400m public fund to help developers "unblock" stalled housing schemes
  • Largest discounts for social tenants wanting to own their properties under right to buy
  • More public sector land to be made available for building
  • Planning obligations on stalled projects reviewed
  • Up to £150m to help bring empty housing back into use
  • Consult on "pay to stay" so households with high salaries pay market rents

Addressing the CBI's annual conference in London, Mr Cameron said it was not his aim to create "another borrowing boom" but to help the many people who could not afford huge deposits needed to buy properties.

"When first-time buyers on a good salary cannot get a reasonable mortgage, the whole market grinds to a halt," he said.

"And that ricochets around the economy, affecting builders, retailers, plumbers - all the people that depend on a housing market that is moving.

"If we don't do something like this we are not going to get this vital market moving... We will restart the housing market and get Britain building again."

Ministers will also intervene to kick-start some of 130,000 building projects which are estimated to have been approved but delayed by funding problems.

New homes

A "Get Britain Building Fund" will see developers compete for a slice of £400m to take forward "shovel-ready" projects which meet the right criteria, among them a commitment to affordable homes.

This initiative will begin in July and aims to lead to 16,000 new homes being built, providing work for 32,000 people.

It is hoped that about 450,000 mainly affordable homes will be built by 2015, many of them on publicly-owned brownfield sites, although the government is not setting any specific targets.

Other parts of the strategy include empty properties being brought back into residential use and new providers being encouraged to enter the social housing market.

Council house sales

To help potential buyers, tenants of social housing are to get the right to buy their home - a hallmark of the Thatcher government in the 1980s - for as little as half the market price.

The money will then be used to build more affordable housing, with ministers saying they will build a new home for every home sold off in this way.

The House Builders Federation said the lack of mortgage availability since the 2008 banking crisis had been "the biggest constraint" on new homes and the indemnity scheme would help to address this.

"In recent years, many people have been unable to realise their dreams of buying a home because of the huge deposits required by lenders," its executive chairman Stewart Baseley said.

"This scheme will be allow people to buy their new home on realistic terms and help, in particular, hard-pressed first time buyers."


Labour say the government have failed to get a grip on the problem in its first year in power and the situation has got worse in some parts of the country.

"These measures are too little, too late from the man who was responsible for choking off growth in the British economy when he came to power," opposition leader Ed Miliband said.

Single mum Kylie Bennett has recently split up with her partner and urgently needs somewhere to live

"Putting back just 10% of the £4bn he cut from housing investment last year will convince no-one he is serious about getting growth back into the economy."

The opposition have urged ministers to levy a £2bn tax on bank bonuses to pay for 25,000 new homes and 100,000 new construction jobs for young people, as part of their five-point plan for boosting growth.

And housing charity Shelter said the government's plans to move more people from social housing into the private rented sector could increase homelessness.

"There is a real danger that as rents go up that welfare bills go up as well," its chief executive Campbell Robb said. "There needs to be much more alignment between housing and welfare."

Other measures in the strategy include a pledge to consult on 'Pay to Stay' proposals where social tenants on high salaries will pay up to market rents if they want to continue living in taxpayer-subsidised homes.

Ministers also say there will be tougher action to tackle "the outrage" of 50,000 unlawfully occupied social homes.


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  • rate this

    Comment number 1268.

    Good Night all.

  • rate this

    Comment number 1267.

    Home owning is an phenomena local to Britain. Large amounts of our country's wealth is lost in bids for bricks and mortar. Other countries enjoy rented housing and spend their wealth on things more important to them. A drop in demand in industry A reflects a rise in industry B. A forced nudge to Industry A is a forced smack to industry B. Give up and let the people decide what they want.

  • rate this

    Comment number 1266.

    How are people going to pay these mortgages, private sector workers are putting away what little they have spare for their retirement and public sector workers are on the third/fourth year of a pay freeze and with pension contributions (if the government get away with it) about to go up. Has the monster raving loony party been elected while i wasn't looking?!

  • rate this

    Comment number 1265.

    Knock Knock Who's there? Hello David it's the failed policies of the passed come to wreak havoc AGAIN. This is EXACTLY why we are in this mess. Social pressure on people to take huge debts in the form of mortgages and giving social housing away for next to nothing are you JOKING?! Its economic armageddon groundhog day over and over in this country! Stop driving the economy off the same DAMN CLIFF!

  • rate this

    Comment number 1264.


    Government has plenty of money although they won't admit to it. It was them that forced councils to give away the housing stock which has in part created this mess, therefore the government can build new ones

  • rate this

    Comment number 1263.

    There is a great little illustrated talk called the crises of capitalism by rsa animate..it was was done over a year ago and highlights how little things have moved on in this topic. One of the previous posts has a point worth considering, people are free if they don't get into debt by mortgaging a property. More social housing with good architects and responsible rsl's that invest in communities

  • rate this

    Comment number 1262.

    1257 nonnamei

    Not a typo but an incorrect key pushed on my lappy and for sum reason when i backspaced your name ended up as nonbread when i hit the enter button sorry bout that dunno wat happened there lol.

    Do u think that govt panders to the whole population ? i would go as far as to say it certainly looks like the opposite and they pander to the minorities and have done for ages.

  • rate this

    Comment number 1261.

    Can't wait for George's big day 29 November. 'Autumn Statement' eh? By then cold weather will have set in and Cammy's 'chilling effect' of the Eurocrisis will be forgotten.Then it will be the weather that is to blame. But we will have a plan.And some good news on the UK economy. And 'son of Broon' will still be squeaking, and Eddy Millipede will be muttering incomprehensibly. That's entertainment!

  • rate this

    Comment number 1260.

    Housing like everything else, food clothing etc. would be a part of social production in a post-capitalist society where everything is commonly owned. Access to the social product would then be free.Capitalism with private ownership and markets is an inefficient use of productive resources.It can not be reformed and must be replaced globally by a democratic majority committed to real socialism.

  • rate this

    Comment number 1259.

    re 1233 I have been thinking along similar lines. Everyone should vote out ALL sitting/previously elected MPs.

    We need a people's charter for a new party NP = No Party.

    Anyone willing to stand to follow a popular vote winning manifesto against EEC/Euro/Bankers/Speculators/Growth/Increasing population.

    Hand power back from the political 'elite' (what a joke!) to ordinary working British people.

  • rate this

    Comment number 1258.

    Can anyone actually tell where the money is going to come from to build all these social houses by that term i take it is council houses.
    All i seem to see everywhere is most local councils are being forced to savagely cut there budgets for the forseeable future, and if that is the case where would the government find the money to fund all these social/council houses ?

  • rate this

    Comment number 1257.


    I'm sorry, did you to me as "nonbread"? Typo I assume... Well I don't think anyone knows how to run the country and if you try to pander to the whole population you get what we have now, a government who can't go one day without reversing and back tracking.

  • rate this

    Comment number 1256.

    I think it must be really difficult for Cammy to understand what is going on even under his nose. To present this scheme, which 'could help up to 100,000 people in England' (to mortgage their own house) in the current financial climate, as 'getting Britain building' is ludicrous. £400 million is chicken feed in this context. You couldn't put the A303 in a tunnel past Stonehenge for that!

  • rate this

    Comment number 1255.

    It's just an extension of the entire government policy since 2008 - do everything to keep the house price bubble inflated, protecting the banks, their bonuses and the BTL parasites at the expense of first time buyers, savers, pensioners, renters, the prudent and the sensible. Anyone who won't admit this is either in on the scam, totally gullible or in denial.

  • rate this

    Comment number 1254.

    @617 The_Gambler

    Yes, I agree in principle it is a good thing, but what is not good is that the flaws in the Banking system that were there before are still there. To ignore this means mistakes just get repeated and we all end up with the consequnces so we really are in it together.

  • rate this

    Comment number 1253.

    So the govt's solution to the fact that individuals and the country have got into debt that they cannot afford - create more debt that individuals cannot afford - and fund that with taxpayers' money. I'm speechless!

  • rate this

    Comment number 1252.

    #1248 Tanglewood. Fair point, however, a lot of people just want to live in their own place, simple as that. Estate agents and banks between them, colluded to increase and increase house prices. Of course estate agents are going to keep increasing price of home in an area if the banks are always going to say yes to a loan.

  • rate this

    Comment number 1251.

    The future, the past, is with more social housing. The idea that everyone can be a house owner is just an unrealistic dream peddled by the Tories. It cannot happen in a free market economy. The housing crisis and the financial mess is almost all due to the notion we can all be house owners. Before social housing we had tied housing - never ubiquitous home owning. Build social housing.

  • rate this

    Comment number 1250.

    1244 nonbread

    This is whats wrong with our society as a whole no mention of the bread and butter workers that is the life blood of this country but as Jay claims to be middle class thats hardly surprising that he only mentions Doctors,policeman and nurses after all its only them that are worth a mention by the so called middle classes.
    Middle class u can see why there are probs in our society

  • rate this

    Comment number 1249.

    This plan supports the large house builders not 1st time buyers. If you want to stimulate building start taxing the vast land banks built up over the last decade. Then they'd have to build and sell (at reduced prices).
    The 15-25% deposits required by the Banks reflects a market that is inherently risky. It is not the Government's job to take on this risk.


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