UK minister working up plans for state-owned housing developer
Exclusive: Steve Reed is looking at government run scheme that could borrow at lower rates than private developers
TL;DR
- Housing Secretary Steve Reed is exploring plans for a state-owned housing developer.
- The goal is to stimulate persistently low rates of housebuilding in the UK.
- The proposed developer could borrow money at lower interest rates than private entities.
- The scheme is not finalized and cannot be announced before a new government takes office.
- This initiative might appeal to potential future Prime Minister Andy Burnham.
- Current government stimulus measures have boosted affordable home starts but overall building figures remain low.
- High material costs and debt, exacerbated by global conflicts, contribute to the problem.
- The state-owned developer would use government funds to buy land and develop projects, with private companies handling construction.
- It could build various types of housing, potentially competing with private builders.
- The plan aims to address the struggles of housing associations with affordable housing.
- The policy exploration occurs as ministers consider appealing to a future Burnham administration.
- Recent days have seen ministers being cautioned against pitching new policy ideas prematurely.