Tuesday, 11 October 2016

Government Could Buy Developers' Unsold Homes Under £2bn Fund

A £2bn fund to boost housebuilding could be used by the government to offer guarantees to developers that it will step in to take on properties that they are unable to sell. The accelerated construction fund, could be used to underwrite new developments on public land, and could mean the government taking on unsold properties, according to Sir Edward Lister, the chairman of the Homes and Communities Agency (HCA), which will oversee it. In an interview with Property Week, Lister said: “The way I see that going is guarantee money rather than anything else. “So it’s about us going to a housebuilder and instead of expecting the normal build-out rate of 50 units a year we’ll say, ‘We want you to build all 500 in one go and what we’ll do is guarantee to take them off you if you can’t find a buyer.’” Read more on the Property Week website.

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