Browns £2.1 billion pledge to new homes

In a statement to the House of Commons today, prime minister Gordon Brown said the government would “target investment” to deliver 20,000 new homes and create 45,000 construction and related jobs over the next two years. This will be part of an overall investment package of around £2.1 billion towards building affordable homes.

Sarah Webb, chief executive of the Chartered Institute of Housing (CIH), said: "We warmly welcome today's proposals, both in terms of the new affordable homes they create, but also the commitment to reform key areas of the housing market which create unfairness....We have been impressed by the new ministerial team responsible for housing. They've listened to housing professionals, considered how we think the system could be improved and acted at short notice to create homes and support jobs. We will do all we can to make sure people benefit from these proposals."

Welcoming the news ,Ruth Davison, director at the National Housing Federation, said: “With up to 5 million people on waiting lists in England alone, we are facing an unprecedented housing crisis...Today’s pledge is great news for those on waiting lists – and housing associations who built more than 38,000 affordable homes last year stand ready to help deliver the housing our country needs.”

The package forms part Labour party’s draft election manifesto, Building Britain’s Future, which aims to lead the country out of the recession. The document also promised a £150 million innovation fund and to force young people who had been out of work for a year into work, training or work experience.