UK sets out 5 billion-pound homebuilding boost
On Monday, the United Kingdom launched a 5 billion-pound homebuilding stimulus package, including plans to borrow up to 2 billion pounds to assist in addressing a long-term housing shortage, which has already become a key economic concern.
The announcement arose on the second day of the ruling Conservative Party's annual conference, traditionally used by the UK’s authorities for setting out how they want to leave the EU and solve social divisions exposed by Brexit.
The government also explained how a 3 billion pound stimulus fund, made up of money already earmarked for housing, would be utilized to finance 1 billion of short-term loans to small homebuilders as well as 2 billion in long-term infrastructure projects.
The new fund is expected to help to build up to 25,000 new homes by 2020. The plan to employ public land would ensure the building of a further 15,000 in the same period.
Those targets are quite moderate compared to the estimated 300,000 homes per year, which a committee of lawmakers estimates the UK requires to meet demand and also cool price growth.