British government to reduce affordable housing
quotas as part of stimulus package

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London construction site by sarflondondunc

Dezeen Wire: the British coalition government's new stimulus package to encourage house building includes complex plans to lower the proportion of affordable housing that private developers must include in large projects, reports CNBC via the Financial Times.

At present, the rules typically force builders to set aside 20 to 45 per cent of new builds as affordable homes, but it is likely that local authorities will now be allowed relax those requirements.

The government may also offer to underwrite bonds issued by housing associations in order to reduce their borrowing costs and encourage them to build.

The plan has been drawn up by Oliver Letwin, the prime minister’s head of policy, along with housing minister Grant Shapps and chief secretary to the Treasury Danny Alexander.