A series of further measures and reforms designed to help alleviate the current challenges in the housing market and to support the vital delivery of more homes over the long-term, have been announced by Housing Minister Caroline Flint.

The measures are part of a new update, published today, on progress to delivering more homes, helping first time buyers, supporting existing home owners, assisting the industry which is currently facing tougher conditions, and ensuring that the right foundations are in place for a recovery in new build starts.

Ms Flint said: "The package that has been announced will both help people facing difficulties right now, and lay the foundations to help meet the long term housing needs of the country.

"That means being ambitious, but also practical and realistic, acknowledging not only the difficulties faced by individuals and families, but for those who work in the house building industry.


"We are determined to continue to do everything possible to promote long-term stability and fairness in the housing market. The international credit crunch has created significant challenges not just for the UK housing market, but in other parts of Europe and the United States.

"However, the long term need to provide more homes has not gone away. We have a growing and ageing population and will only see worsening affordability unless we increase housing supply."

The measures include: A new scheme to support first time buyers into affordable home ownership by renting first and buying later; New partnerships between the public and private sector that will put councils back at the centre stage of providing homes; New proposals to deliver up to 75,000 homes in 20 more towns and cities, with £100 million into these areas for the schools, hospitals and other facilities needed to support homes; Allocating the first tranche of a £510 million funding pot to reward councils who are working to bring land forward for development, helping to provide more homes and give the house building industry greater certainty that suitable land will be available when the market picks up; Confirming that more funding, beyond the £200 million already allocated to buy unsold stock from house builders for affordable homes, could be made available, should the properties by in the right place, at the right price, and offering good standards and new plans to work with local authorities and housing associations to examine proposals for mortgage rescue schemes and the wider role they could play in supporting home owners.

(CD/JM)