Government investment 'kept Britain building during recession'

Thu 01 Apr 2010

The government has hailed the impact of the steps it took to ensure the housebuilding industry survived the recession.

According to housing minister John Healey, £4.2 billion has been invested in the sector since June 2009.

This, he said, has helped to deliver the new homes the country needs, safeguard and create jobs and strengthen the economic recovery.

Mr Healey stated that public investment was a "vital boost" to the housebuilding industry during the economic downturn.

However, he said it is necessary to ensure this investment carries on to ensure that the recovery continues and that housing demand is met.

Mr Healey was speaking after he announced that an extra £263 million is being allocated towards the building of new affordable homes and kickstarting stalled developments.

The government added that public money was allocated to every region of the UK during the recession.

This comes after the National Housing Federation said the housebuilding sector should be given the same "untouchable status" as funding for health, education and policing.

Roger Fitton, a partner at Winckworth Sherwood Solicitors, commented: "Winckworth Sherwood has acted on numerous large regeneration schemes that have benefited from public investment and without which they would not have been viable.

"On occasions the Grant investment conditions have proved difficult to comply with as they require the developer to have Title which landowners are reluctant to part with where the entire purchase price is not being paid up front, which 99 per cent of the time it is not.

"Reform of this condition should be considered."