Corbyn’s plan for new homes
Jeremy Corbyn is the new leader of the Labour party and together with his shadow cabinet has already set out what he plans to do to provide new homes for the UK.
But what we want to know is what Corbyn proposes to help tackle the housing crisis?
1. Building targets
Corbyn believes that the current house building targets are too low and proposes a new target of 240,000 per year through public investment. He also proposes that 50% of these homes be allocated as council homes and 60,000 of the new homes be built in London.
Corbyn also wants a shift back towards regional targets for new homes to allow for more affordable housing in rural areas.
These targets are ambitious compared with the current targets from the Conservative government which only focus on starter homes of which they aim to develop 200,000 by 2020.
2. Availability of land
Under the new Labour party it would become easier to acquire land for building new homes through plans to introduce a land value tax on land which has not been developed, but has the necessary planning permissions in place.
Measures would also be put in place to deter developers from hoarding brownfield land through a ‘use it or lose it’ policy. Corbyn would allow councils to buy undeveloped sites at a fair price and be transferred used to develop the homes needed in their area. Labour also plans to help Local Authorities to utilise empty houses in the country so that they can be used to provide housing in the area.
The Conservative’s on the other hand have developed a Brownfield fund to release public land for the construction of new build homes.
To enable councils to fund the building of new homes Corbyn proposes removing the borrowing cap currently in place on the Housing Revenue Account. In addition to this Corbyn would like to set up a National Investment Bank with low interest rates to support new housing developments.
This is in contrast to the Conservatives controversial Right to Buy scheme which they plan to free up £4.5bn per year through the sale of high value properties in order to build more affordable homes.
By Anna Symington
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