LONDON Oct 5 Britain's government will buy
unsold homes built by developers using a 2 billion pound fund
($2.5 billion) announced earlier this week, a move designed to
get construction firms to commit to bigger projects, a trade
journal reported on Thursday.
On Monday Britain launched a 5 billion-pound housing
stimulus package, including plans to borrow 2 billion pounds to
increase the pace of house-building which will now be used to
guarantee housing developments.
"It's about us going to a housebuilder and instead of
expecting the normal build-out rate of 50 units a year, we'll
say: 'We want you to build all 500 in one go, and what we'll do
is guarantee to take them off you if you can't find a buyer',"
Edward Lister, chairman of the Homes and Communities Agency,
told Property Week.
Although the housing market has shown signs of cooling since
the vote to leave the EU, a chronic shortage of properties keeps
prices out of the reach of many young and low-income Britons.
A committee of lawmakers estimated that Britain needs to
build 300,000 homes per year to meet demand and cool price
growth. The country has not built more than 200,000 homes in a
single year for a decade.
($1 = 0.7857 pounds)
(Reporting by Andy Bruce; Editing by Raissa Kasolowsky)