Govt Lifts Borrowing Cap To Boost House Building

Many Brits continue to struggle to get on the property ladder, despite the government having tried to boost the housing market for some years. Its latest move to lift the borrowing cap to encourage more house building is another attempt at helping first-time buyers (FTBs) achieve their dream of home ownership.

Earlier last week (October 29th), the chancellor of the exchequer Philip Hammond published his Autumn Budget to Parliament.

In his speech, he confirmed plans to get rid of the cap, so local authorities can borrow more money to build timber frame houses in their areas.

Mr Hammond stated: “We are giving councils greater control over the money they raise.”

He went on to say: “By removing the Housing Revenue Account cap … councils can help to build the homes this country needs.”

Last month, Prime Minister Theresa May promised to scrap the limit in her Conservative Party speech, with BBC News reporting her as saying this cap “doesn’t make sense” as councils required more power should they need to build new homes.

Hammond also suggested adapting high streets could help with the “housing challenge”. The £675 million being put into a Future High Streets Fund will transform British high streets and develop more housing here.

This move has been supported by the Federation of Master Builders, with chief executive Brian Barry saying between 300,000 and 400,000 new homes could be created from empty rooms above shops.