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Council defies recession to boost housing market

Council defies recession to boost housing market

Hot on the heels of announcing a £14m new build programme of 129 council homes, Councillor John Lines, Cabinet Member for Housing, will today (Wednesday 23 September) unveil ambitious proposals to beat the housing market downturn and offer incentives to developers to once more build houses for sale.

Addressing a Developer’s market place event, Councillor Lines will announce that the Municipal Housing Trust plans to build homes for rent and homes for sale in Phase II of its programme.

The Council is holding a Developer’s Forum to coincide with the opening of the National Housing Federation conference in the city to set out proposals to help developers build new homes for sale, based on a long term profit sharing arrangement.

Councillor Lines commented: “We understand the risks that developers have to take up front – borrowing money to buy land to build, finding the costs at risk for planning and design – and that these are big risks in the current market. But we want to talk to developers about how we can reduce those risks and get the private house building market moving again.

“Instead of selling land to developers, we are keen to explore the option of sharing profits with developers when new homes are sold. Typically, when homes are sold we recoup the value of the land once they are sold but we are keen to ensure developers would not need to find the money to buy land ‘up front’”.

The Developer’s Forum will be held at 11.15am on Wednesday 23rd September at the Hyatt Regency Hotel, Broad Street and is open to contractors and developers who have expressed a wish to work with Birmingham City Council. Around 60 developers have been invited personally by Councillor Lines.

Further information from Belinder Kaur Lidher on 0121 303 6969 or 07766922814.

  • Category: Housing
  • Reference number: BL-410
  • Issue date: 23 September 2009