The Home Builders Federation (HBF) has welcomed the official launch of the new Homes and Communities Agency (HCA) but warned that the opportunity this presents to maximise the benefits of public money must not be wasted, with increasing numbers of people desperate for a home.

Representatives from HBF are already working closely with senior HCA officials to find ways of using the estimated £17 billion budget it will control over the next three years to deliver much needed social and private housing in today's very challenging market.

HBF believes the current economic situation dictates that the new agency needs to bring forward significant amounts of its budget as a matter of urgency to help maintain housing supply and industry capacity.

-- Advertisement --

There is a need to look at imaginative ways of helping to 'pump-prime' new developments, which otherwise would not be started in the short term. In today's market, private sector developers are not able to provide the necessary up-front funding, knowing that the mortgage famine means many home buyers will not be able to purchase the completed homes.

There is also a need to assist first-time buyers who would like to get their foot on the property ladder but may be encountering difficulties in obtaining suitable mortgage finance through initiatives such as user-friendly shared equity schemes.

Stewart Baseley, Executive Chairman at HBF said: "We are already working closely with Sir Bob Kerslake and his team to establish how together we can increase the supply of housing of all types in the current economic climate and ensure the public purse gets the maximum bang for its buck.

"The new agency needs to be allowed to find ways of speedily reallocating the money in its budgets that the economic crisis means cannot be spent as planned, to kick start new housing projects.

"By doing so, they will both ensure desperately needed housing supply is maintained, and house building industry capacity will be protected - something vital for housing provision both now and for when we emerge from the current downturn. I look forward to working with Sir Bob and his team and wish them well."

(CD)