Plans for housing bond system to generate 拢5bn questioned

Ed Miliband

Housing experts have raised doubts about Labour鈥檚 plans to revive a housing bond system to generate 拢5bn for housebuilding.

On the campaign trail last weekend Ed Miliband said a Labour government would introduce a new bond scheme that would enable 125,000 homes to be built through funds channelled from the Help to Buy ISA.

Income from the ISA would be channelled into a 鈥渇uture homes investment fund鈥� for housing projects, similar to housing bonds used in the 1920s to stimulate housebuilding.

The fund will be targeted at new sites and local first-time buyers will get priority, Labour said.

EC Harris鈥� head of residential Mark Farmer told 好色先生TV the policy was 鈥渧ery noble鈥�, but questioned whether Labour could get banks to use the Help to Buy ISA funds in this way.

Farmer said: 鈥淐an the government tell a private company how to invest their funds? I鈥檓 not sure they can from a legal viewpoint. There would have to be a change to the legal framework.鈥�

The Home Builders Federation and Council for Mortgage Lenders gave the policy a cautious welcome, but warned it was light on detail.

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