Housing and infrastructure investment boost for building industry

13th March 2019

The Chancellor focused on the Government’s determination to support the housing market in his Spring Statement 2019 speech, making a commitment to unlocking productivity growth and making housing more affordable.

At the despatch box, Philip Hammond disclosed a string of investments in UK housing projects up and down the country that will be encouraging news to small and medium-sized housebuilders and contractors.

He confirmed that £717 million of the £5.5 billion Housing Infrastructure Fund had been ring-fenced to build up to 37,000 new homes at strategic sites including Old Oak Common in North-West London, Cheshire and the Oxford-Cambridge Arc to unlock these areas of significant economic potential.

In addition, £260 million was announced to support the Borderlands Growth Deal. When combined with the £102 million confirmed from the Housing Infrastructure Fund for Carlisle, this means that £362 million of Government funding is being invested into the Borderlands region. Negotiations are also progressing on future deals for mid-Wales and Derry/Londonderry.

There will also be fresh investment in new affordable homes, with the Government providing a £3 billion guarantee of borrowing by local housing associations throughout England to underpin the construction of 30,000 properties.

In the Autumn Budget 2017, the Chancellor laid out a comprehensive plan to increase the UK’s housing supply by the end of this Parliament to 300,000 new homes per year; its highest level since 1970. Today’s Spring Statement 2019 sets out the Government’s next steps to reach this goal.

The Government has also published a consultation on Infrastructure Finance, to determine how it can best facilitate private infrastructure investment amid the UK’s changing future relationship with the European Investment Bank.

Call us today to make an appointment at your local office

01934 429663

Or submit an enquiry