UK government puts aside £388 million for housing projects
The UK government has today confirmed that £388 million has been put aside to provide funding to 115 private sector housing projects in England. The "Kickstart scheme" has begun with a £62 million payment to an array of private sector developers who had been caught short by the recession and were forced to mothball some of their developments. So what does this mean for the industry?
If you read the headlines you may be forgiven for assuming that the £388 million is a "giveaway" to the building sector when in fact two thirds of the developers have been told to repay the money in full and a significant number have reached individual agreements with the government. All in all it seems that this giveaway is not really a giveaway and is in fact a taxpayer funded loan to increase the number of houses in the UK at a time when the housing market itself is still under pressure.
There is concern that the introduction of new homes to the market could well reduce competition and slow down the recovery in UK property prices. It would appear that the UK government is more interested in keeping employment numbers as high as possible in UK property sector, possibly at the expense of property prices across the UK. How these companies will be able to afford to pay back substantial government "loans" in the short to medium term is anybody's guess.
Share this..
Related stories
Road Tax Increase For 9 Million Drivers
Even though the Conservative Party has been in the news of late with regards to expense scandals and problems with the new Lord Mayor of London, it seems that Gordon Brown is always there to bail them out. News that 43% of drivers will suffer under the governments new road tax plans (9 million drivers in total!) and only 33% will benefit has again taken away much of the heat from the Conservative...
Read MoreThe Council Of Mortgage Lenders Predicting Doom And Gloom
In a move which has probably crystallised the fears of many in the UK, the Council Of Mortgage Lenders (CML) has issued a downbeat report on the outlook for the UK housing market. While government forecasts estimate a fall in property prices in the region of 5% to 10% this year, the CML believe it will be around the 7% level, with 35% few transactions compared to 2007.
While this i...
UK banks to warn George Osborne of problems ahead
The British Bankers Association (BBA) will this week hold a meeting with George Osborne to discuss a potential £1 trillion black hole in banking finances. The £1 trillion figure is made up of a £400 billion liquidity program which was closed by the Bank of England and EU regulations which could see an additional £600 billion held in reserve by the banking industry to meet new capital adequacy...
Read MoreHouse prices rise again in October
A survey by Hometrack has confirmed that house prices in England and Wales rose by 0.2% in October to an average of £156,400. This is the third such rise in a row and while many people are now starting to call the bottom of the property market it is worth noting that the number of people signing up with estate agents has begun to slow. While this may just be a reflection of the time of the year,...
Read MoreLooking after the kids
At this moment in time a great number of adults up and down the UK are struggling to meet the everyday cost of living with very little money left over for savings. However, when the UK economy finally does recover and the employment market picks up again there will be money for discretionary spending or discretionary saving. So how can you look after the kids for the future?
More an...