No silver bullet for homes crisis, says Hammond as PM pledges: ‘I’ll fix it’
‘There isn’t a single thing that solves the challenge of affordability in the housing market’
PHILIP HAMMOND has warned that there is “no silver bullet” to fix Britain’s housing shortage, even as Theresa May vowed yesterday to take “personal charge” of the response to the crisis.
The Chancellor will today wipe more than £60billion of housing association debt from the Government’s balance sheet in a move aimed at boosting house building ahead of his Budget.
Ministers have announced that housing association debt, which was transferred on to the Treasury’s books in 2015, will be reclassified and wiped from the national debt.
The debt will be transferred back to housing associations, in a bid to give them greater control over their own finances and enabling them to build more homes. It could also give Mr Hammond more room for manoeuvre in his Budget.
The announcement will be made by Sajid Javid, the Communities Secretary, during a visit to Bristol. The Government said that the move would “ensure housing associations have a stable investment environment to build more”.
Speaking at the Treasury yesterday, Mr Hammond said: “There is no silver bullet, there isn’t a single thing that solves the challenge of affordability in the housing market,” said Mr Hammond. “We are a crowded island and this is a very complex challenge.
“But we have done a lot of work on this and next week we will start to set out our plan for addressing the housing challenges in this country, making sure that the next generation has the same opportunities as their parents did for home ownership and the accumulation of personal wealth through assets.” By contrast, Mrs May struck a far more upbeat tone ahead of a visit to a new housing development in Barnet, north London, as she vowed to take “personal charge” of the response to the housing crisis. She said: “That is why I have made it my mission to build the homes the country needs and take personal charge of the Government’s response.
“Today I am seeing the work now under way to put this right and, in coming weeks and months, my Government will be going further to ensure that we build more homes, more quickly.
“This will be a long journey and it will take time for us to fix the broken housing market – but I am determined to build a Britain fit for the future.”
It comes amid suggestions that the Treasury has been pushing Downing Street to relax planning restrictions on Green Belt land. The Prime Minister yesterday made clear in the Commons that the protections will remain in place.
The Chancellor has also rejected calls by Mr Javid to borrow billions of pounds to invest in housing.