Leeds on track for housing first

A YORKSHIRE city could be one of the first places in the country to agree a '˜housing deal' with the Government to help build thousands of new homes.
Leeds could be one of the first places to agree a 'housing deal' with the GovernmentLeeds could be one of the first places to agree a 'housing deal' with the Government
Leeds could be one of the first places to agree a 'housing deal' with the Government

Chancellor Philip Hammond will discuss the emerging agreement when he visits Leeds later today.

Mr Hammond is expected to visit a housing development in the city as part of a wider tour of the North which will include a meeting with metro-mayors from Manchester, Liverpool and Tees Valley.

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The final housing deal could be announced later this year as part of Mr Hammond’s Autumn Budget.

Housing deals were a measure set out in the Conservatives’ general election manifesto earlier this year.

The Treasury said housing deals “will look to increase the supply of housing in areas of high demand”.

Communities Secretary Sajid Javid, the Cabinet minister responsible for housing, said: “I want to strike housing deals across the country to support councils’ ambitious and innovative plans for new homes, and to help boost supply where it’s most needed.

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“We’re committed to considering all tools at our disposal, and by using our money more flexibly we can deliver more homes.

“We’re making good progress with a Leeds housing deal and hope to announce further details at Autumn Budget.

“As well as increasing housing, this will help grow local economies as part of our commitment to the Northern Powerhouse.”

The Conservative manifesto, launched in Halifax, promised to help councils which want to “build high-quality, sustainable and integrated communities”.

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It continued: “We will enter into new Council Housing Deals with ambitious, pro-development, local authorities to help them build more social housing.”

The Conservatives promised to give councils access to “significant low-cost” funding to build extra homes.

Council homes built through ‘housing deals’ will automatically be offered for sale to private buyers after a 10 or 15 year period with the money raised used to build more properties.

Tenants living in homes built as part of the scheme will have an automatic right to buy the property when it becomes available.

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The Government has come under growing pressure to take stronger action over housing amid growing evidence of a disconnect between wages and house prices.

During David Cameron’s time in Downing Street, the Government introduced schemes including ‘help to buy’ which gave financial help to housebuyers.

But the measures were criticised for focusing on tackling affordability rather than increasing housing supply.

Mr Javid signalled a signficant change in tone last year with a speech calling on Conservative MPs and council leaders to stop opposing the building of new homes in their areas.

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However, the Government has been accused of failing to match its rhetoric with actions.

Last year, Bradford Council’s plans for new housing were put on hold at the orders of then housing minister Gavin Barwell following complaints about their potential impact on greenbelt.

The Government later lifted the block but warned it would be watching the council closely.

Research published by housing charity Shelter earlier this year suggested the average price of a new home in Yorkshire, £189,950, was unaffordable to more than eight out of 10 families currently renting.