Government funded housing stimulus on the way
Government are preparing a significant financial package as a housing stimulus to assist the industry post-Brexit.
The multi-billion pound fund, announced in Property Week, will come via the HCA as loans to the industry. This will include the private rented sector, small and medium-sized businesses and developers using modular construction for build-out. For larger schemes, the fund will provide financial guarantees. Furthermore, these will assist developers and bring forward hard to build sites.
It seems the Government recognise the need to stimulate a wider cross section of the industry. Ultimately, it will be interesting to see how sectors such as the private rented sector react.
This story coincides with an announcement from Persimmon. Their shares rose 5% on the back of highly positive trading news. Despite expected problems post Brexit, the house builder now feels there will be little to worry about after EU departure. Demand for new homes is, apparently, booming. Inevitably, the larger house builders have the funding to benefit. It will be the smaller developer builders that might benefit from this latest stimulus.
Whatever details emerge through the Autumn Statement the Government seem committed to take on greater financial risk. Will this housing stimulus persuade the industry to to build the country out of the housing crisis?