Housing industry given boost by new Government initiative

The Coalition Government turned its attention to the housing industry at long last yesterday with both Prime Minister David Cameron and Deputy Prime Minister Nick Clegg launching an initiative to boost house building in the UK.

The two famous faces chose a building site in Guildford to promote the £400 million “Get Britain Building” campaign and it is thought the money will be directed at schemes already underway but have been stopped due to lack of finance. Many of the homes will be typically covered by landlord insurance as the schemes were undertaken by Social Housing Groups but it is thought there will certainly be some money in the scheme to finance prospective homeowners looking to get a mortgage.

Part of the plan will see public finance underwriting mortgage indemnity schemes of up to 95%. This will be aimed at those looking to buy homes but struggling to raise a deposit. The scheme is not without its critics, who question the policy of lending taxpayers money to people who have been turned down by banks as unsuitable for a loan, but the Prime Minister asserted the money will be well spent if it allows young people to meet their aspirations and at the same time creates work in the construction industry.

Speaking about the scheme he said: “When first-time buyers on a good salary cannot get a reasonable mortgage, the whole market grinds to a halt. 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.”