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David Cameron: We'll 'directly commission' 13,000 new homes David Cameron: We'll directly commission 13,000 new homes
(about 2 hours later)
The government is to "directly commission" the building of up to 13,000 new affordable homes on public land, David Cameron is set to announce. The government is "pulling out all the stops" by directly commissioning the building of up to 13,000 homes on public land, ministers say.
The "radical" announcement will see the government take responsibility for developments, help small firms and speed up house building, the PM said. Smaller developers will be able to buy sites in England with planning permission in place - with 40% of the new-builds to be so-called "starter homes" aimed at first-time buyers.
The government was "rolling its sleeves up" and "getting homes built", he said. PM David Cameron said it was a "huge shift in government policy".
But shadow housing minister John Healey said the PM was "laying on the rhetoric to hide his failure on new homes". But Labour said he was using "rhetoric to hide his failure on new homes".
Shadow housing minister John Healey said the announcement did not promise any new affordable homes beyond those already announced.
'Radical' shift'Radical' shift
Direct government commissioning allows the government to assume responsibility for developing land instead of large building firms. Direct commissioning allows the government to assume responsibility for developing land, instead of large building firms.
Downing Street said the move was a "radical new policy shift", with up to 13,000 homes set to be built on five publicly-owned sites in 2016 - with up to 40% being affordable "starter" homes. Communities Secretary Greg Clark told BBC Radio 4's Today programme the government was "pulling out all the stops to get the country building".
"We know that consistently 90% of people aspire to own their own home, and for many years now home ownership has been in decline," he said.
He added that the eight biggest building firms accounted for 50% of the house-building market, and there was a need to involve smaller and medium-sized companies.
Downing Street said the move marked a "radical new policy shift", with up to 13,000 homes set to be built on five publicly-owned sites in 2016 - with up to 40% being affordable "starter" homes.
In December 2014 former Lib Dem chief secretary to the Treasury Danny Alexander announced a pilot plan for the government to "directly commission, build and even sell homes" at a former RAF base in Northstowe, Cambridgeshire.
BBC home editor Mark Easton said the extent of government involvement marked something of an ideological shift for a Conservative administration, adding that starting 13,000 homes represented a "tiny proportion" of the million the government wants built by 2020.
Starter homes
The government wants to build 200,000 starter homes - to be offered to first-time buyers under 40 at a minimum 20% discount price - by 2020.The government wants to build 200,000 starter homes - to be offered to first-time buyers under 40 at a minimum 20% discount price - by 2020.
It said a pilot for the scheme will start on five sites: The discounts apply to properties worth up to £250,000 outside London, or £450,000 in the capital.
A pilot for the scheme will start on five sites:
Where can I afford to live?Where can I afford to live?
Why 'starter homes' are controversialWhy 'starter homes' are controversial
Mr Cameron said the announcement signals "a huge shift in government policy". Mr Cameron said the government was "rolling its sleeves up and directly getting homes built".
"Nothing like this has been done on this scale in three decades - government rolling its sleeves up and directly getting homes built," he added. The government will also announce a £1.2bn fund to help developers prepare underused brownfield land for building.
The government will also announce a £1.2bn fund to build 30,000 affordable starter homes on underused brownfield land in the next five years.
The move will fast-track the creation of at least 30,000 new starter homes by 2020, Downing Street said.The move will fast-track the creation of at least 30,000 new starter homes by 2020, Downing Street said.
New homes 'failure'New homes 'failure'
Communities Secretary Greg Clark said the government was "pulling out all the stops to keep the country building". However, Labour's shadow housing minister John Healey said home ownership was at its "lowest level in a generation".
"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," he added.
"This, and the £1.2bn new Starter Homes Fund, will help thousands of people to realise their dream of owning their own home."
However, Labour's shadow housing minister, Mr Healey, said home ownership was at its "lowest level in a generation".
"In the Autumn Statement a few weeks ago, George Osborne tried to spin his halving of public housing investment as an increase. Now David Cameron is laying on the rhetoric to hide his failure on new homes," he said."In the Autumn Statement a few weeks ago, George Osborne tried to spin his halving of public housing investment as an increase. Now David Cameron is laying on the rhetoric to hide his failure on new homes," he said.
"Today's statement promises no new starter homes beyond those already announced."
He added: "David Cameron needs to do much more to fix his five years of failure on housing."He added: "David Cameron needs to do much more to fix his five years of failure on housing."