David Cameron will announce £1.2bn in extra funding to build 30,000 “starter homes” on brownfield land over the next five years.
The funds, in addition to £2.3bn already announced in the Autumn Statement, are intended to kickstart government plans to build 200,000 starter homes by 2020.
The government, in what it has described as a “radical new policy shift”, will directly commission the building of the new affordable homes on publicly-owned land where planning permission is already in place.
It will favour smaller developers which are currently unable to take on larger projects.
Communities secretary Greg Clark said: “Today’s radical new approach will mean the government will directly commission small and up-and-coming companies to build thousands of new homes on sites right across the country.
“This, and the £1.2bn new Starter Homes Fund, will help thousands of people to realise their dream of owning their own home.
“Currently the top eight house builders provide 50 per cent of new homes. The direct commissioning approach will support smaller builders and new entrants who are ready to build but lack the resources and access to land.”
The pilot for direct commissioning on publicly owned land will start with five sites: Connaught Barracks in Dover; Northstowe in Cambridgeshire; Lower Graylingwell in Chichester; Daedelus on Waterfront in Gosport; and Old Oak Common in London.
Brian Berry, chief executive of the Federation of Master Builders, said: “When it comes to building new homes, the availability of small sites is the single biggest barrier to SME house builders increasing their output.
“Any measures that the Government can introduce that will increase the number of small sites suitable for SME house builders will help address the housing shortfall.”
