Will Direct Commissioning Really Help First Time Buyers?

On 4 January the Prime Minister announced a "huge shift in government policy", namely a direct commissioning of up to 13,000 homes over four sites outside of London and an as yet unspecified number of homes at Old Oak Common in Hammersmith.

It is planned that up to 40% of homes on these sites will be Starter Homes, the Government's new flagship policy, which seeks to increase home ownership for first time buyers.

The government's ambition is to get more houses built, successfully test a new model for development and support small or medium sized enterprise (SME) builders.  However, will direct commissioning achieve any of these aims?

By direct commissioning, the government will order the construction of homes on sites that it owns, which already have the benefit of planning permission. In doing so, it will employ smaller building firms which have traditionally been unable to secure government contracts and have been buffeted by the economic downturn.