The construction trade has been given a shot in the arm by news that the government has pledged £7bn to house-building with the aim of creating 400,000 new homes.

Government promises 400,000 new homes In his Autumn Statement and Spending Review this week, Chancellor George Osborne told parliament that he was launching the “biggest housebuilding programme since the 1970s” in a bid to tackle Britain’s home ownership crisis head on.

Around £2.3bn will be paid directly to developers to build 200,000 new starter homes.

And a £4bn pot has been set aside for housing associations, local authorities and the private sector to provide 135,000 Help to Buy shared ownership homes by 2021.

Housebuilding in Britain is failing to keeping pace with figures from last year.

There were 37,582 new homes registered between August and October, according to the National House Building Council, including 30,046 private sector properties and 7,536 in the public sector.

During the same three months last year, there were 37,707 new homes registered.

However, 6,464 new homes were registered in Greater London between August and October last year compared with 5,876 in the same period 12 months later.

And a spike in the number of new homes registered in October this year could be explained by builders trying to take advantage of the lower rate of Insurance Premium Tax, which increased 3.5% on 1 November.

NHBC chief executive Mike Quinton commented: 'The last three months have seen new home registrations in line with the corresponding period a year ago.

'However we expect to be reporting growth for 2015 as a whole, as the first 10 months of 2015 show a 10% increase in registrations compared with the same period last year.”

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