In a speech to councils and the housing sector, Shapps said that he has already identified enough government land to build 80,000 homes.
“I am working across Whitehall to ensure we release enough public land for 100,000 new homes by 2015. But I’m looking beyond Westminster and want to see organisations like the BBC, Royal Mail and Network Rail also follow our lead.”
He also confirmed that the government’s mortgage indemnity NewBuy Guarantee scheme is on schedule to launch in March.
The scheme, announced in the Housing Strategy in November and led by the Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) will provide up to 95% loan to value (LTV) mortgages for new-build properties in England, backed by a house builder indemnity fund.
The scheme aims to offer homes to 100,000 buyers.
Shapps said the scheme will be open to UK citizens buying new-build houses and flats priced at up to £500,000 as their main home, whether they are first first-time buyers or moving up the ladder.
Sean King, CEO, Move with Us said the NewBuy Guarantee scheme would cut the deposit needed by aspiring homeowners to around 75%.
“On a home worth £120,000 buyers would only need a deposit of around £6,000 rather than as much as £24,000.”
He added this cuts out roughly three years saving for a couple earning the average UK wage.
“It is a pity that the scheme could not be widened to existing housing as we believe this new initiative from the Government could help those disadvantaged by tougher lending rules realise their dream of moving up the property ladder,” added King.
Developers will need to heavily promote the scheme alongside clear guidance on eligibility for the scheme to succeed, he added.
Today, shapps also announced details to end the “tax on tenants,” finalising a £19bn deal that will enable councils to keep the rent they collect, giving them around 15% more to spend on managing and maintaining properties.
He outlined proposals to bring “outdated” protections for leaseholders back in line with changing property prices and put forward proposals to raise the £25,000 notional annual rental value, outpaced by house price inflation since it was set in 1990, to £100,000.
Shapps said that this will enable many leaseholders to stay in their home when their lease comes to an end.
Grenville Turner, chief executive of Countrywide said that it welcomes the measures that offer added protection for leaseholders.
“We have seen rental demand increase significantly, leading to a serious shortage of rental properties available to let.
“With an average of five tenants competing for each available rental property, any government support to encourage investment in the buy-to-let sector and assist leaseholders to stay in their home when their lease comes to an end is good news.”
