The UK government will use a £2bn fund to accelerate the construction of 15,000 homes by 2020. Financed by government borrowing, the initiative will purchase newly-built homes that developers are unable to sell on the market, but only applies to developments on public land. It is hoped that the guaranteed sale of homes will incentivize property developers to construct houses more rapidly. In addition, the government has announced plans for an additional £1bn in funding over five years aimed at helping councils build new homes.
The UK government will use a £2bn fund to accelerate the construction of 15,000 homes by 2020. Financed by government borrowing, the initiative will purchase newly-built homes that developers are unable to sell on the market, but only applies to developments on public land. It is hoped that the guaranteed sale of homes will incentivize property developers to construct houses more rapidly. However, critics of the scheme have suggested that labour shortages may hinder the project.