Borrow more to fix housing crisis – Javid

Media playback is unsupported on your device

Media captionCommunities Secretary Sajid Javid: ‘We are looking at new investments’

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”.

Housing charity Shelter said his comments suggested the government was “going in the right direction”.

Labour said spending on new affordable homes had been “slashed” since 2010.

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.

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 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”.

Media playback is unsupported on your device

Media captionWant to buy a house? Under 25? Watch this

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.

“We are looking at new investments and there will be announcements,” he said, saying these would come in next month’s Budget.

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.

“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.

What’s changed?

Analysis by BBC political correspondent Jonathan Blake

Image copyright Getty Images

Not so long ago, ministers would repeat at every opportunity the need to “balance the books”.

Austerity was necessary to cut the deficit – to eliminate the gap between the amount the government spent and how much it received through taxes.

Now though, a cabinet minister openly suggests borrowing more money to fund a major policy.

So what’s changed?

The economic impact of the Brexit vote means the chancellor’s catchphrase is the politically more convenient but far less catchy “commitment to fiscal discipline”.

Not unlike Labour’s “fiscal credibility rule”, the Conservatives now seem comfortable with borrowing large amounts to fund long-term investment projects.

The government will be hoping that as well as new homes, it will get support from voters in return.

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.

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.

Councillor Martin Tett, of the Local Government Association, called for councils to be given the power and funding to build houses.

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.

Related Topics

More From this publisher : HERE

 


RELATED PRODUCTS
  • Make Your Life Comfortable Easly Identify and Fix Bad Body Posture
  • Learn What To Do When You Are Engrossed In Your Negative Emotions
  • All in one PC repair, data recovery and security software will solve any broken situation
  • Keep your family from being attacked and robbed by buying these items
  • Speed Up Your PC Performance Get the PCFixKit Windows registry cleaner.
  • Repair Your Game Console With This Step-By-Step Do-It-Yourself Guide
  • Convert your body's bad fat into Good fat that actually burns calories.
  • You can learn how the formula and the system of Mr. Fix-It For Sports works right now.
  • Clickbank Ads
     

    If you like our content help us with a share… or two …  

    Also -  I have some free stuff for you .......

    Nr 1. In This FREE Report you can Discover:

    Secrets to acquiring the freshest, hottest leads via YouTube In-Stream ads quickly and easily! Best secret tips for the most effective targeting for your ads! Totally legal, but little-known method for literally stealing traffic from your competitors! Get more traffic to your videos and landing pages without spending a fortune! And much more - all within this special FREE report!

     

    Nr 2. Did you know you can Absolutely EXPLODE YOUR EMAIL LIST FOR FREE with UNTOUCHED offline sources?

     

    Nr 3. The #1 secret to becoming an affiliate superstar - Earn your first $100 online – without a dime to invest.

    If you’re still looking to “make it online – I have just the thing for you. It’s a video series that shows how to make your first $100 online – even if you don’t have a dime to invest. Yes – nothing.  Free.  Nada. Is this possible? You bet. It’s the most powerful system used by those “in the know”. Good things don’t have to be difficult. And they don’t only come to those who wait. Have A Look

     

    Nr 4. Top 10 Email Marketing Mistakes. Which of these mistakes do you make?

     

    Nr 5.  You can learn about : The hottest social networking site that will send an unlimited stampede of traffic to your site - for FREE! How to quickly locate a swarm of hungry buyers using "information portals"! The fast and easy way to use simple images to siphon targeted traffic, on command! Learn how to get the most possible traffic from Instagram, and make sure that traffic converts! And much more ...

     

    Nr 6. It’s no secret… Facebook is an incredible place to get tons of free, viral traffic. But… most people are going about it all wrong.  How many of these mistakes are you making? Download the free report to find out.

       

    Nr 7.  Special free report .  It's called "Operation Midas Touch" and you can download it here...

    The report features a surefire method for generating at least $1000 per week online,without a website or product of your own!

    Nr 8.  Instagram is still one of the hottest ways to get a LOT of traffic fast. All by sharing images. Sounds easy enough, yeah? Well, yes and no. If you want to really start driving a lot of  traffic and making sales using Instagram then you should download this report.

    Nr 9.  When it comes to creating a product online there are so many ways to approach it. Wouldn’t it be great to just get the meat of it all so you can get started faster? Well, the good news is, today you can download a guide called the Product Creation Formula Quickstart Guide. It’s as the title suggests - a Quickstart guide. You’ll get a list of action steps to take right away. Download your copy today !

    Nr 10. Would you like to finally USE all of that dusty PLR you have sitting around on your harddrive? Or maybe find the resources for the best PLR available - at the best prices? What about how to use that PLR to make you money with just a few minutes of work. Well, you’re not going to want to miss this!

      Nr 11. Buzzfeed’s top post has more than 21 million views. Think about that for a sec… ONE of their articles has had over 21 million people who have read it! And they have thousands of articles... what would you do with that kind of traffic? A friend of mine hacked their method and was able to use it to get 11,592 targeted new subscribers in 2 weeks on their very first attempt!

    Nr 12. Push notifications are one of today's hottest trends in website traffic and conversions, and for good reason. Studies have shown that as many as 40% of people will opt-in for push notifications, which is about TEN TIMES the rate of people who opt-in for emails! That’s huge! Not only that, but they're also highly effective at pulling clicks, as well. Some studies have shown CTR at an average of around 40%, with highs of as much as 80%! Again, that’s huge!

    Nr 13. Would you like to know how to get more money from the exact same number of website visitors you’re currently getting? Even if you’re website is getting as few as 1-2 visitors a day, this report will show you how to increase your profits using these few handy hacks.

    Nr 14. People have now realised that it's not the size of the list which matters, it's the quality. ... and the only way to create a quality list is by launching your own products. Let it be $7 ebooks, $17 info products, $27 video training product or software's... all of these work. My good friend Kevin Fahey has is revealing how he's launched over 20 products in the past 4 years, many of them top sellers. Needless to say he's banked a handsome amount in this time.

    Nr 15. Do you ever feel that the man you like or even love, just doesn't see you or desire you in way you want him to? Or... maybe you're able to get a man's attention though not the right kind of attention? Or... maybe you're still single because you wait and wait for men to approach you first? What you may not know is that the way we flirt will either attract the "wrong" man for us or the "right" man.

    Nr 16. When it comes to getting sales and leads online, there is ONE thing that 95% of marketers use... it's called a LIST. My friend Jimmy just released a free book that explains WHY a list is important and how YOU can build your own list. It's available right here (and it won't cost you a penny)

    Nr 17. If you have tried everything, and still aren't able to get your Ex back, then you need to pay attention.

    Nr 18. What if I told you that you could make ANY woman WANT to do ANYTHING for you? Would you think I'm crazy? Well... what If I told you that you could also make her LOVE every minute of it and come back for more?

       

    Nr 19. I have a special free plugin for you today. It's called "Covert Hover Mini"

    This plugin will triple your blog traffic by compelling your visitors to share your images on social media. This is some really clever stuff and it works like a charm. After you grab your free plugin, don't  forget to read the free bonus report as it will show exactly how and why this strategy works like crazy.

    Nr 20. The days of being able to get away with a basic WP theme and a pic or two are gone, your site needs to look good. Even Google are looking for you to have engaging graphics on your site. But getting good quality graphics made for your site is a pain, AND it will cost you both time and money (if you outsource it). But I have a special free download for you today. A virtual treasure chest of over 21K profit pulling graphics you can start sing today to generate more traffic & sales!

    Nr 21. 20 professional full HD background videos. These background videos are perfect for giving your videos that extra kick they need to stand out from the crowd Oh yeah they are in full 1080p HD too, I hope you'll enjoy them.

    Nr 22. If you've ever failed to create a WordPress site of your own or typically waste hours & even weeks trying to figure it all out on your own....

    Nr 23. No doubt, you've seen all of the video launches lately! There is a reason for it... Video marketing is a GREAT way to make money, and with the recent creation tools making it super accessable for anyone to get started... It's no surprise that more people are making videos. However... there is a missing element to most video marketing products...

    Nr 24. For the first time ever... You can get the straight scoop on how someone is selling over $1,000,000/year of t-shirts on Facebook!

    Use them  .... and have fun !