Latest news with #NationalHousingBank
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
Dream home is hard to get: 109 yrs of savings needed to buy one in Mumbai
The real estate market is booming but homes in India's largest cities are becoming unaffordable, even for the wealthy, according to two major reports. In Mumbai and Gurugram, the top 5 per cent in income class have to save money for decades to buy a standard home, according to the 'Trend and Progress of Housing in India' report by the National Housing Bank (NHB) and the Household Consumption Expenditure Survey Factsheet' of the National Sample Survey Office (NSSO). NHB's Residential Property Price Index (RPPI) tracks the cost of a 110 square metre (1,184 square foot) house in various cities. NSSO's Household Consumption Expenditure Survey (HCES) 2022-23 provides income data for urban households, including the richest 5 per cent. Assuming a 30.7 per cent savings rate, as reported in 'India Gross Savings Rate', a report by CEIC Data, Business Standard calculated how long it takes to afford a home. Here's what the data shows for key cities: City House Price (in lakh) Annual Savings (in lakh) Years to Buy Mumbai 354 10.7 109 Gurugram 226 11.7 64 Bhubaneswar 120 2.3 53 Patna 81 6 45 Kolkata 97 8.2 39 Ahmedabad 94 8.1 38 Chennai 113 10.2 37 Bengaluru 115 10.4 36 Delhi 135 12.7 35 Lucknow 79 7.9 33 Dehradun 70 9.4 30 Ranchi 68 7.7 29 Guwahati 73 8.3 27 Thiruvananthapuram 87 10.9 26 Bhopal 57 7.2 26 Vizag 67 8.7 26 Raipur 50 6.5 25 Hyderabad 89 12.5 23 Ludhiana 55 7.9 23 Jaipur 45 9.3 16 Chandigarh 78 17.4 15 Mumbai is the least affordable city, requiring 109 years of savings for a Rs 3.54 crore home, even for those earning Rs 10.7 lakh annually. Gurugram follows, with a Rs 2.26 crore home requiring 64 years at Rs 11.7 lakh savings per year. Chandigarh is relatively affordable: a home costing Rs 78 lakh will take 15 years to buy if one has Rs 17.4 lakh in annual savings. Mumbai and Gurugram Housing demand in Mumbai outstrips supply. A 110 square metre home, which will be a modest 2BHK apartment, costs Rs 3.54 crore. Even the top 5 per cent, those with an estimated monthly per capita expenditure of Rs 22,352 (according to NSSO data), will struggle. Gurugram, a corporate hub near Delhi, is growing rapidly and the same-sized home costs Rs 2.26 crore. These cities highlight a broader trend: job-rich urban centers are pricing out even high earners. What does this mean for your finances? For middle class families, owning a home in Mumbai or Gurugram is difficult. Young professionals starting their careers face an even steeper climb. Planning to buy a home reshapes personal finance in several ways: Many may need to settle for smaller homes or live on rent for long. Loan dependence: Taking a home loan means high interest rates and long tenures increase financial strain. The NHB notes that housing loans reached Rs 33.53 trillion by September 2024, up 14 per cent year-on-year. More affordable cities like Chandigarh, Jaipur (16 years to repay a loan), or Hyderabad (23 years) may attract talent, but job opportunities often tie people to expensive hubs. This situation also affects long-term goals. Saving for a home can crowd out other priorities like retirement or education, forcing families to rethink their budgets. Broader implications The affordability gap isn't just a personal finance issue; it's a societal one. High prices in cities like Mumbai and Gurugram could slow urban economic growth, as workers struggle to settle. The NHB report highlights regional disparities in housing finance: southern states (35 per cent) and western states (30 per cent) dominate loan distribution, while north-eastern states get just 0.68 per cent. This uneven access worsens the crisis in high-cost areas. Government schemes like Pradhan Mantri Awas Yojana (PMAY) aim to boost affordable housing, but their impact in premium cities is limited. The NHB's RESIDEX index shows a 6.8 per cent price rise in Q3 2024, suggesting costs will keep climbing without major policy shifts. Looking ahead For individuals, navigating this crisis requires smart planning. Start saving early, even if it's a small amount. Explore suburbs or tier-2 cities where prices are lower. If loans are unavoidable, compare rates and opt for shorter tenures to minimize interest. Government subsidies under PMAY can help, especially for first-time buyers.
The Guardian
19-06-2025
- Business
- The Guardian
Ministers set out plans to spend £725bn on UK infrastructure over 10 years
Ministers have pledged to spend £9bn a year on fixing crumbling schools, hospitals, courts and prisons over the next decade as part of the government's infrastructure strategy. Darren Jones, the chief secretary to the Treasury, set out plans on Thursday to spend a minimum of £725bn over 10 years to boost UK-wide infrastructure and achieve a 'national renewal'. Jones announced that £6bn a year would go to repairing hospitals in England, £3bn to fixing and upgrading schools and colleges in England and £600m to courts and prisons in England and Wales. The money will fund building improvements including removing crumbling reinforced autoclaved aerated concrete (Raac) in hospitals and strengthening safety and security in prisons. Jones told MPs: 'Done properly it will result in tangible improvements to the fabric of our country, our local roads and high streets renewed so communities are even better places to live.' The strategy also includes £1bn to fix roads, bridges and flyovers across the UK and £590m to start work on the Lower Thames Crossing project. Some £16bn will go towards building 500,000 new homes through a new publicly owned National Housing Bank. Richard Fuller, the Conservative shadow chief secretary to the Treasury, urged ministers to set out which major projects are being abandoned and explain why. Business and industry groups, who have long argued the need for a long-term vision to provide certainty and encourage investment, broadly welcomed the strategy – although the government portal of actual projects will not now be launched online for another month. This project 'pipeline' will be updated every six months. Alex Vaughan, the CEO of construction and engineering firm Costain, said the launch was 'a crucial step towards ending the short-termism that has held our sector back'. The Railway Industry Association chief executive, Darren Caplan, said a 10-year strategy and the commitment to publish a pipeline in July was extremely welcome, adding: 'We look forward to seeing the full details of the pipeline, which will need to give businesses sufficient clarity to plan ahead.' Henri Murison, chief executive of the Northern Powerhouse Partnership, said: 'A government operating within the spending rules it has set for itself demonstrates real commitment – one that can unlock private investment and finance, which will take confidence from this stability.' John Dickie, chief executive at BusinessLDN, said it showed welcome government recognition 'that Britain needs a clear, committed, long-term pipeline of future public investment to give the private sector the confidence to invest'. Sam Gould, director of policy at the Institution of Civil Engineer, said it was 'a significant moment' with lots of positives, but added: 'The sector will need more information on private finance models, and on how [it] will meet the demands of our changing climate.' The strategy does not cover so-called megaprojects, which cost more than £10bn and take more than 10 years to deliver. These include the HS2 railway, Sizewell C nuclear plant and the Dreadnought submarine programme.
The Independent
18-06-2025
- Business
- The Independent
Government launches National Housing Bank to drive 500k new builds
Deputy Prime Minister Angela Rayner has defended Labour 's plan to build 1.5 million homes against critics who doubt the feasibility of the target. It comes as she announces the launch of the government-backed National Housing Bank, supported by £22bn in government finance. The scheme aims to provide low-interest loans to developers and unlock new housing schemes across the UK, aiming to build over 500,000 new homes. The announcement follows a Savills forecast that only 840,000 new homes will be completed over the next five years. Government figures show a 28 per cent fall in new-build starts in England compared to 2023. Writing for The Independent, Ms Rayner blamed the Tories for the 'broken system' and said: 'Underestimate me at your peril.'
North Wales Chronicle
18-06-2025
- Business
- North Wales Chronicle
National Housing Bank ‘will boost delivery of new homes'
The National Housing Bank, a subsidiary of Homes England, will be publicly owned and act as a consistent partner to the private sector, bringing stability and certainty to housing developers and investors, the Government said. It will be designated as a public financial institution and will work with mayors and local leaders to back housing projects meeting regional priorities. It is hoped the bank will help to unlock a wide range of sites, including bigger ones which struggle to get upfront lending given their risk and complexity. The Government also said the move will help SMEs (small and medium-sized enterprises) to grow and build out their housing pipeline more quickly. The bank will deploy some of the £2.5 billion in low-interest loans announced at the spending review to support the building of social and affordable homes. It will be backed with £16 billion of financial capacity, on top of £6 billion of existing finance to be allocated this Parliament, the Government said. It said the new public investment could help build more than 500,000 new homes. Deputy Prime Minister and Housing Secretary Angela Rayner said: 'Our foot is firmly on the accelerator when it comes to making sure a generation is no longer locked out of homeownership – or ensuring children don't have to grow up in unsuitable temporary accommodation, and instead have the safe and secure home they deserve.' The announcement builds on plans for a 10-year affordable homes programme and comes ahead of a 10-year infrastructure strategy to be published on Wednesday, setting out plans to 'rebuild the UK' over the decade ahead. Chancellor Rachel Reeves said: 'The new National Housing Bank will unlock £53 billion of additional private investment.' Homes England chairwoman Pat Ritchie said: 'Establishing the National Housing Bank, as a part of Homes England, builds on the agency's expertise at providing a wide range of finance to partners and places to unlock the delivery of new housing and mixed-use schemes.' A spokesperson for the Royal Institution of Chartered Surveyors said: 'The launch of a National Housing Bank is an exciting innovation which could propel much-needed investment into housebuilding. 'The industry, and especially SMEs, need all the support they can get for the country to build. 'Confidence is key if the Government is to meet its 1.5 million home target and new streams of investment and support should invigorate new and existing projects.' The Conservatives warned the remit of the new bank must be 'laser-focused'. Kevin Hollinrake, the shadow housing secretary, said: 'While the ambition to increase housing supply is welcome, history teaches us that governments are often poor at picking winners and Homes England has very mixed results. 'The new National Housing Bank must be laser-focused: it must not crowd out private capital, must not subsidise developments that would have proceeded anyway and must not be lured into funding pie-in-the-sky or unviable projects – instead its role should be limited to de-risking only those schemes that are genuinely unable to attract finance, to ensure taxpayer money is not wasted and private investment is not crowded out. 'But beyond this we must look at the root cause of the housing problem – including why SME developers have been driven out of the market and why financing has become so unattractive that the Government needs to step in. Only Kemi Badenoch and the Conservatives are doing the deep thinking necessary to address these root issues.'
Leader Live
18-06-2025
- Business
- Leader Live
National Housing Bank ‘will boost delivery of new homes'
The National Housing Bank, a subsidiary of Homes England, will be publicly owned and act as a consistent partner to the private sector, bringing stability and certainty to housing developers and investors, the Government said. It will be designated as a public financial institution and will work with mayors and local leaders to back housing projects meeting regional priorities. It is hoped the bank will help to unlock a wide range of sites, including bigger ones which struggle to get upfront lending given their risk and complexity. The Government also said the move will help SMEs (small and medium-sized enterprises) to grow and build out their housing pipeline more quickly. The bank will deploy some of the £2.5 billion in low-interest loans announced at the spending review to support the building of social and affordable homes. It will be backed with £16 billion of financial capacity, on top of £6 billion of existing finance to be allocated this Parliament, the Government said. It said the new public investment could help build more than 500,000 new homes. Deputy Prime Minister and Housing Secretary Angela Rayner said: 'Our foot is firmly on the accelerator when it comes to making sure a generation is no longer locked out of homeownership – or ensuring children don't have to grow up in unsuitable temporary accommodation, and instead have the safe and secure home they deserve.' The announcement builds on plans for a 10-year affordable homes programme and comes ahead of a 10-year infrastructure strategy to be published on Wednesday, setting out plans to 'rebuild the UK' over the decade ahead. Chancellor Rachel Reeves said: 'The new National Housing Bank will unlock £53 billion of additional private investment.' Homes England chairwoman Pat Ritchie said: 'Establishing the National Housing Bank, as a part of Homes England, builds on the agency's expertise at providing a wide range of finance to partners and places to unlock the delivery of new housing and mixed-use schemes.' A spokesperson for the Royal Institution of Chartered Surveyors said: 'The launch of a National Housing Bank is an exciting innovation which could propel much-needed investment into housebuilding. 'The industry, and especially SMEs, need all the support they can get for the country to build. 'Confidence is key if the Government is to meet its 1.5 million home target and new streams of investment and support should invigorate new and existing projects.' The Conservatives warned the remit of the new bank must be 'laser-focused'. Kevin Hollinrake, the shadow housing secretary, said: 'While the ambition to increase housing supply is welcome, history teaches us that governments are often poor at picking winners and Homes England has very mixed results. 'The new National Housing Bank must be laser-focused: it must not crowd out private capital, must not subsidise developments that would have proceeded anyway and must not be lured into funding pie-in-the-sky or unviable projects – instead its role should be limited to de-risking only those schemes that are genuinely unable to attract finance, to ensure taxpayer money is not wasted and private investment is not crowded out. 'But beyond this we must look at the root cause of the housing problem – including why SME developers have been driven out of the market and why financing has become so unattractive that the Government needs to step in. Only Kemi Badenoch and the Conservatives are doing the deep thinking necessary to address these root issues.'
