Plans to give property developers a helping hand with cash flow have been welcomed by a Shropshire accountant.
Mark Bramall, from Dyke Yaxley Chartered Accountants, in Shrewsbury, said the radical “build now, pay later” deal announced by the Government was excellent news for the industry.
“The scheme is a real boost for house builders who will only pay for the land once work has started on the new homes, providing a lifeline to those struggling with cash flow problems, as it will enable them to start building straight away.”
The move comes as part of a package of ideas unveiled by the Government including plans to release public land for house building to help tackle the chronic shortage of residential properties in the UK.
“From the Autumn, every UK Government Department with significant land banks will publish plans to release thousands of acres of previously developed land to house builders,” said Mark.
“As one of the country’s biggest landlords, it’s vital that the Government makes these sites available for developers so they can get on with building the homes that are so desperately needed.
“They have said property experts will work during the coming months to make sure no site is missed out or left unused.”
Mark said it was now up to developers to come forward to make the most of the opportunity.
“Cash flow has often been a big stumbling block for house builders, particularly given the tough economic climate at the moment, so these changes will be welcome news for an industry that’s really suffered during the downturn.
“Since the Recession began, many larger land deals have been conditional on planning and generally on deferred payment terms.
“So the Government’s new model will fit well with the reality of the marketplace that house builders are experiencing. It’s a catalyst that will hopefully spur the industry on and ignite the construction sector once again in order to get the housing market moving.”