Tonight is the annual speech by George Osborne to a City audience at Mansion House. We revealed this morning that the chancellor will set out plans to speed up development of disused industrial sites, in his latest attempt to stop housing shortages from holding back economic growth.
He will explain a package of planning reforms and state investment, worth hundreds of millions of pounds, to speed up housebuilding.
Osborne will roll out nationally a plan – proposed by Boris Johnson in London – for investing public money in cleaning up former industrial areas, in exchange for deals with developers and local authorities to guarantee speedy housebuilding. He will also set out planning reforms that could give an effective “presumption in favour of development” on brownfield sites.
But I’m told that the biggest surprise tonight may not be on the “supply” side but rather on the “demand side”.
Osborne, I’m told, still believes that there is no bubble in the London housing market, and that recent price rises are mainly a function of cash buyers and under-supply. Yet the coalition have been under pressure since Mark Carney warned in May that the housing Read more