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Borrow more to boost building, says Sajid Javid Borrow more to boost building, says Sajid Javid
(about 2 hours later)
The housing crisis should be tackled by borrowing more to fund construction, a senior cabinet minister has said. The government should borrow money to fund the building of hundreds of thousands of new homes, a cabinet minister says.
Communities Secretary Sajid Javid said taking advantage of record-low interest rates "can be the right thing if done sensibly".Communities Secretary Sajid Javid said taking advantage of record-low interest rates "can be the right thing if done sensibly".
The housing crisis Britain faced was "the biggest barrier to social progress in our country today", he told the BBC. Housing charity Shelter said his comments suggested the government was "going in the right direction".
The Budget on 22 November would contain more on housing policy, Mr Javid said. Labour said spending on new affordable homes had been "slashed" since 2010.
"We are looking at new investments and there will be announcements." It comes as Mr Javid launched an eight-week review of housing, in which he has called on the industry to offer solutions to the home-buying and selling process.
It comes as Mr Javid launches an eight-week review of housing, in which he has called on the industry to offer solutions to the home-buying and selling process. The government has admitted house-building in the UK is failing to keep up with demand, and has described the current market as "broken".
Speaking to BBC One's Andrew Marr Show, Mr Javid said he wanted to "make sure that we're using everything we have available to deal with this housing crisis". Speaking on the BBC's Andrew Marr show, Mr Javid said successive governments had failed to build enough homes, and that the housing crisis Britain faced was "the biggest barrier to social progress in our country today".
'Invest in the future' He said between 275,000 and 300,000 homes a year - a level of house-building not seen since the 1960s - were needed in England alone to help tackle the shortage in affordable housing.
He said between 275,000 and 300,000 homes a year were needed in England alone to help tackle the shortage in affordable housing. "We are looking at new investments and there will be announcements," he said, saying these would come in next month's Budget.
"So for example... you borrow more to invest in the infrastructure that leads to more housing - take advantage of some of the record-low interest rates that we have. I think we should absolutely be considering that." Asked about the change in tone from the Tories' previous approach to borrowing, Mr Javid said a distinction should be drawn between "vitally important" deficit reduction and "investing for the future" in housing and infrastructure.
He added he would "make a distinction between the deficit, which needs to come down - and that's vitally important for our economic credibility... "So for example... you borrow more to invest in the infrastructure that leads to more housing - take advantage of some of the record-low interest rates that we have. I think we should absolutely be considering that," he said.
"But investing for the future, taking advantage of record-low interest rates, can be the right thing if done sensibly. And that can help, not just with the housing itself, but one of the big issues is infrastructure investment that is needed alongside the housing." Recent announcements by the government include a pledge by Theresa May at the Conservative Party conference this month of an extra £2bn to build an additional 25,000 social homes.
Theresa May pledged at the Conservative Party conference this month to fix the housing crisis, as she announced an extra £2bn for affordable housing to build an additional 25,000 social homes. Earlier this year, the government unveiled a new housing strategy for England, which included giving councils powers to pressurise developers to start to build on land they own, and building more affordable homes to buy and rent.
And last month Mr Javid promised a "top-to-bottom review" of social housing in the UK.
'Hot air' on housing
Kate Webb, of Shelter, said: "What the government are now talking about is exactly what they should have been talking about all along."
At a time of low interest rates, borrowing for housing was a "good investment" for the government, she said, but the key would be the types of houses that are actually built.
These have to be affordable to, for example, a teaching assistant or a shop worker, she added.
Labour's housing spokesman John Healey said there had already been plenty of "hot air" from ministers on house-building.
"Any promise of new investment is welcome, but the reality is spending on new affordable homes has been slashed since 2010, so new affordable house-building is at a 24 year low."
He promised Labour would build 100,000 "genuinely affordable" homes per year.