£500m bid to beat housing shortage - News in brief - Evening Standard
       

£500m bid to beat housing shortage

The Government has announced details of a £500 million incentive for local authorities to build more homes.

The money will be handed to local councils who produce plans to speed up delivery of new homes, identify suitable sites, and increase housing within set timescales.

It is thought the grants will be aimed at areas where there is a shortage of housing, such as in the South East.

The scheme is aimed at creating more homes for a mix of people, including young families and first-time buyers.

Housing Minister Yvette Cooper said the scheme was aimed at combating the increasing housing shortage and enabling more people to get on the housing ladder.

But the proposals have been criticised by the Local Government Association (LGA), which said the Government has ignored the needs of many councils.

LGA chairman Sir Simon Milton said: "Councils want to work with the Government to build the new homes that the country needs. It is disappointing that this announcement seems to be rewarding councils for playing a crude numbers game and ignores the needs of the majority of councils with housing challenges.

"A key issue is where the money goes as there will be many areas that this money does not cover which will have equally as pressing housing needs for local families.

"What is also now necessary is for funding for the roads, schools and hospitals needed to turn desolate dormitories into places where people can live and work."

Sir Simon said financial incentives for councils to identify potential housing sites would free up land, but it was important that densely populated areas were not penalised simply because they have less land available for development.

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