Whitehall departments originally offered up sites with the capacity to contain 50,000 new homes. That figure will rise to 85,000, according to insiders.
Rather than paying for the land upfront, at many of the sites property developers will be offered the option to “build now, pay later”.
The ability to delay payment until the homes are completed should relieve pressure on the companies’ cash flow.
“The government made it clear that we can only solve the housing crisis by building homes. That is why we’re determined to bring forward derelict brownfield land that the government holds,” said Housing Minister Grant Shapps.
The initiative is part of a housing announcement ahead of the broader growth review due to be unveiled on 29 November, which aims to direct £50bn of private money into new infrastructure projects.
George Osborne, the Chancellor, plans to encourage institutional investors such as pension funds and insurance companies to help pay for building homes, roads and power plants, promising revenue from rents, tolls and energy bills in return.
