Housing Market

U.K. intervention in housing market spurs home construction

Home ConstructionRecent data from the British government revealed that government interventions in the housing market have contributed to the fastest rate of homebuilding seen in the past three months.

Over the past year, homebuilding has risen 16 percent, with 32,230 homes started between July and September—the fastest rate since 2008. More than 18,000 reservations have been made through the U.K. government’s Help to Buy program.

Help to Buy loans are open to first-time buyers and movers to build new homes up to $969,180. Since 2011, nearly 50,000 households have moved into the housing market—36,000 through Help to Buy and earlier programs and more than 13,000 through the Right to Buy, which allows council tenants to purchase their home at a discount.

“We’ve taken the tough decisions to tackle the deficit, [keep] interest rates and repossessions down, and [to introduce] a series of initiatives to help build more affordable homes and give hard-working people a helping hand up the housing ladder,” U.K. Housing Minister Kris Hopkins said. “But there’s still more to do, and improving the housing market will remain a top priority. That means getting builders back on site, delivering new housing, more jobs and ensuring every hardworking family has a place they can call home.”

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