'Build now, pay later' scheme for Government land
December 2011
Januarys is backing a Government scheme which will allow developers to 'build now, pay later' on soon to be released public land.
The scheme, which is part of a strategy to tackle the UK's chronic shortage of new homes, aims to create enough space to build 100,000 properties by 2015 through selling off unwanted land that is currently in the hands of Government departments such as the Ministry of Defence and DEFRA.
But it is the 'buy now, pay later' incentive that has particularly caught the eye of Director Rob Harrison.
“I think it is an excellent idea,” he said. “There are any number of schemes across the country which have ground to a halt because of the developer's inability to obtain finance for the project.
“Some have planning permission, some have even been started, but since the recession loans have been very hard to come by, even on potentially very profitable developments.
“Meanwhile, this country is in desperate need of new homes.
“This new scheme offers the best of both worlds. Developers can reduce their costs considerably at a time when they most need to, while the Government retains control of the land until it is paid for. It should help considerably with cash flows and offer a much needed boost to developers, the construction industry and those looking to buy a property.
“There is still much to be done to get the level of house building back to where it ought to be in the UK, but this is a welcome step.”