Government offers £388 million to builders to finish homes

The government has allocated £388million to ensure 115 private sector housing projects in England which have stalled during the downturn can be completed. Housing minister John Healey described the Kickstart scheme as a "rapid response to the recession".The government says it will mean 11,000 homes are built and 9,500 jobs saved.

Mr Healey said: "With this investment, we are creating jobs and helping build the homes people need...Kickstart funding comes with tough terms, and I expect much of this money to be repaid within five years...Some developers have failed our tough value-for-money test, but I'm also encouraged that others have withdrawn saying they no longer need help because market conditions are improving."

Shadow housing minister, for the Conservatives, Grant Shapps said: "Any building that goes ahead is welcome. But there's a huge housing crisis, not least because there have not been enough homes built under Labour...The problem isn't about just this year; it's about long-term lack of building...These government announcements often don't come to very much, and I would take this one with a pinch of salt."