Two new households to every one home built

The Government is facing pressure to help car manufacturing and the Post Office but there is a stronger case for helping the house-building sector because as well as securing businesses and jobs it also delivers much-needed homes.

CIH Chief Executive Sarah Webb said: “The Government has acted, through the Homes and Communities Agency, to bring forward land and funding for affordable housing.

“And the re-entry of Government-owned Northern Rock to the mortgage market may help unlock lending in the vital 80-90% loan to value range and allow first-time buyers in, but it will not be enough.

“The Government cannot allow the construction sector to collapse and it is becoming increasingly clear that direct support is vital either to keep new houses being built or to use construction workers to renovate our existing homes, nearly a million of which are empty.”

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