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Govt unveils £8bn housing plans
24/07/2007

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The government has announced details of an £8 billion investment in the housing market as it seeks to build tens of thousands of new homes.

Aimed at first-time buyers, the reforms are designed to improve the supply of housing, meaning more people can get on to the property ladder.

Housing minister Yvette Cooper unveiled plans to build a minimum of 70,000 affordable homes every year by 2011, doubling the build rate in 2004.

In addition the government is also freeing up £300 million for investment in transport infrastructure to support the new houses, adding to an existing investment of £19 billion in infrastructure in the south-east.

Ms Cooper commented: "We need to build more homes across England. The housing shortage means first-time buyers and young families are finding it increasingly hard to get their first step onto the housing ladder unless they have financial help from parents or relatives - and that's just not fair."

The government says it wants three million new homes in place by 2020, with two million of these built by 2016.

Julian King of National Homebuyers, the UK's leading company proving homeowners with a 'sale home quick' solution says, "It's a questionnable route; building homes to create affordability".

"With interest rates and house prices at such a level that there are no potential buyers for these overpriced houses, will building new - cheaper - homes not simply cause a problem for the homesellers in the long run?"

The fast property purchase firm is seeing an increase in the number of enquiries from people who need to sell their home quick because of affordability problems when they exit their current agreement.

"We sympathise wih people unable to get on the ladder and with people already on the ladder who are unable to take the next step. Up or down", says King.
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