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£1bn cash injection for housing industry would be an insult

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£1bn cash injection for housing industry would be an insult

David Bexon, Managing Director of SmartNewHomes.com, comments on rumours of a £1bn cash injection for the housing industry, to be announced in tomorrow’s budget: 

“An injection of £1bn into the housing industry is a total insult and will not even scratch the service. It signifies the Government’s total lack of understanding of just how important housing is to the economic recovery of this country and will do little to help get this vital part of the market back on track. 
 
“In the three months to the end of February, private new home starts fell 72% on the same period the year before – with just 7,931 new applications recorded*. An injection of £1bn would not even begin to address this deficit of new homes, which is moving further and further away from the Government’s previously identified targets. 
 
“A commitment to inject £1bn into the housing market is step in the right direction, but it simply does not go far enough – taken in literal terms, it would equate to the building of just 4,500 new homes. It is ludicrous to expect that this sum will not only assist developers in building new homes but will have to incorporate other measures such as the extension of the stamp duty holiday on homes under £175,000, improved infrastructure and schemes to turn unsold stock into social housing.”




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