Labour Adapts Tory Policy On Housing Fund

The Labour Party has taken the unusual step of adapting a recent Tory announcement to create a £5bn housebuilding fund.

In George Osborne's budget last month he unveiled a first-time buyers ISA savings account.

The ISA sees investors' savings boosted with up to £3,000 of government money to help them buy a home.

The Labour Party says it would ensure that savers' money in these accounts was used by the banks to invest in housebuilding.

A spokesman said: "We are quite literally building on their policy."

Labour said this was "a major new manifesto commitment" and the £5bn "Future Homes Fund" would build 125,000 homes over the course of the next parliament.

It will be a key part of Labour's plan to raise construction levels of homes to 200,000 a year by 2020.

The estimated fund does not cover the entire cost of Labour's plan.

In a speech in Warrington, Ed Miliband described the idea as "a foundation stone for building a country where working people can succeed".

He said: "The banks will benefit from the taxpayer support we will provide to help people save for their first home.

"In return, we will expect the banks to invest in homes for the next generation. Unlocking £5bn for 125,000 homes.

"A Labour government will get Britain building again."

The Conservatives have announced plans for 200,000 homes to be made available to first-time buyers in England by 2020, if they win the election.

They plan to build 200,000 homes a year.

The Liberal Democrats promise 300,000 homes a year while the Greens say 500,000 social houses should be built annually.

The social housing would be paid for by scrapping buy-to-let mortgage interest tax allowance.

UKIP says new homes should be exempt from stamp duty.