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Housing: Construction

Volume 501: debated on Thursday 26 November 2009

To ask the Chancellor of the Exchequer (1) what steps his Department is taking to stimulate the house building industry; (301134)

(2) what plans he has to assist the house building industry in the next two years.

At Budget 2009, the Government announced a £600 million housing package to stimulate housing development and boost capacity in the house-building industry. On 29 June, the Government announced in Building Britain's Future that they are investing a further £1.5 billion over the next two years to build an extra 20,000 new energy efficient, good quality, social and affordable homes, and a further 10,000 additional homes for private sale.

Taken together, over £900 million will be allocated over the next two years via the Kickstart Housing Delivery Programme to unlock development on currently stalled housing sites. We expect an additional 22,000 new homes, of which up to 8,000 will be affordable, to be delivered with support from these programmes. £340 million in funding will also be made available to local authorities to deliver new social housing at higher energy efficiency standards, expected to deliver up to 3,900 new homes.

This is in addition to previous announcements in September 2008 of support to the house-building industry and first-time buyers, including the temporary stamp duty land tax holiday and the provision of £300 million in funding for HomeBuy Direct, and the Government's fiscal stimulus at pre-Budget report 2008.