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Government to give home-building land to developers with no up front charge


The Government will announce a plan this week that will see land given to developers to build one thousand homes and boost growth, according to media reports.

The scheme will allow developers to use brownfield land on which development was started but has since stalled. They will be able to take on the land for free and will only be required to pay when the properties are sold.

Prime Minister David Cameron is expected to release land such as old army barracks and former government offices which have the potential to be converted into flats, according to reports in Sunday's newspapers.

As well as boosting housing to reduce the huge shortfall, the programme could create up to 200,000 construction jobs.

This scheme will run alongside the 'New Homes Bonus' initiative which was launched last year, enabling local authorities to retain the council tax from the properties for 6 years.

Though it will be praised by some as an attempt to deal with the shortfall in housing, the scheme has been criticised by Labour shadow housing minister, Alison Seabeck, who has said that the government should be focussed on local authority land.

"[The coalition] has focussed on government land, which accounts of 1 per cent of that available. Local authority land accounts for 50 per cent," said Seabeck at the recent Labour Party conference.

David Cameron is due to unveil the scheme at the Conservative party conference this week.

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