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Social housing giant Keepmoat has welcomed Prime Minister David Cameron's plans to get "Britain building again".

The Doncaster company said the mortgage indemnity scheme unveiled by government was an acknowledgement that a "healthy" housing market was fundamental to Britain's recovery.

Buyers of new homes will be able to borrow up to 95 per cent of the value with government underwriting part of the risk to lenders.

Keepmoat managing director Peter Hindley said: "We also applaud the moves to untangle the red tape which has stalled many planning applications and to create the infrastructure which will encourage more house building.

"It is the shortage of available homes which has driven the average private rents in England and Wales to an all time high at £718 per month, according to property specialist LSL. Yet, when it can be much more affordable for people to buy, the challenges of saving large deposits and securing mortgages can be a major barrier.

"We sincerely hope today’s announcement addresses these issues and begins to allow developers to build the homes the country clearly needs."

Keepmoat is to merge with Apollo Group later this year and has targeted revenue in excess of £1bn.

This story first appeared in the Insider News Yorkshire, to view the original article please visit http://bit.ly/uEohKK.