Government reportedly readying a multi-billion pound property fund

The government is reportedly preparing a multi-billion pound fund to support property developers in a bid to stimulate the UK’s economy after the Brexit result.

The fund will be allocated through the Homes and Communities Agency to small and medium enterprises in the form of loans to support projects across the country. According to sources cited by Property Week on Monday, the fund would be used to give financial guarantees to developers who are worried about developing big projects in the uncertain economic climate.

The plans are likely to be announced in the Autumn Statement, which will be presented to the House of Commons in late November or early December.

The news comes as consultancy group Barbour ABI, which supplies data to the Office for National statistics, announced on Monday there was a sharp decline in infrastructure spending since the EU referendum in June. Infrastructure contracts in July fell 20% to £1.5bn, compared to June, and fell 23% year-on-year. New construction contracts were also down £5.8bn in July.

Theresa May, in her maiden speech as Prime Minister, said she would tackle the growing housing crisis and the widening gap between supply and demand.