Chancellor George Osborne is set to reveal details of a £7 billion plan to invest in new housebuilding as part of his Autumn Statement.
The Treasury said Osborne would unveil “the biggest affordable housebuilding programme since the 1970s”.
The sweetener – released to the media ahead of today’s Spending Review – comes as £12 billion cuts to welfare and some £20 billion of additional cuts to Whitehall budgets are expected to revealed.
The housebuilding programme will include £2.3bn paid directly to developers to build 200,000 “starter homes”, aimed at first-time buyers.
These will be offered at a 20% discount on prices up to £250,000, or £450,000 in London.
£4 billion will be pledged to to help build 135,000 “Help to Buy: Shared Ownership” homes for households earning less than £80,000 by 2020-21.
£200 million will be added to a budget for 10,000 new homes for tenants to live in for up to five years while they save for a desposit. These tenants will then be given first choice to buy the home.
Osborne says 8,000 specialist homes for older people or those with disabilities will be built at a cost of £400 million.
Housing and mortgage specialist Michelle M from Monton’s Revive Mortgages commented: “This is great news, with a mix of Help to Buy and shared ownership.
“These schemes are not for landlords or investors and show the government’s commitment to empower people to own their own home.
“It will also help private tenants who are paying astronomical rents to some private landlords, and the funding will boost the construction industry which will create more jobs in the sector so it’s a win/win for the economy.”
Presented by Chancellor George Osborne, the Spending Review sets out what government spending will be over the next four years, while the Autumn Statement is an annual update of government plans for the economy.
