LONDON, March 20 (Reuters) - Housebuilders BarrattDevelopments and Crest Nicholson set out plansto expand their businesses on Thursday after the Britishgovernment extended a housing scheme that has driven buyerdemand.
Finance Minister George Osborne confirmed in his annualbudget on Wednesday that the government would extend the equityloan portion of the Help to Buy scheme for four years longerthan planned to 2020, a move he said would deliver 120,000 newhomes.
In response, Barratt Developments, Britain's largesthousebuilder by volume, said it plans to hire 3,000 more workersas it anticipates increasing the number of sites it is workingon to 450, from the current 380.
Smaller housebuilder Crest Nicolson, said it would besetting up a third, new business in the Home Counties regionaround London, which could add up to 600 homes a year to itscompletion rates once it is fully up-and-running.
"As the land we are buying today is for the homes we will bebuilding in 2016 and beyond, the industry needed a longer termframework for Help to Buy," Barratt's Chief Executive Mark Claresaid.
Crest's Chief Executive Stephen Stone said the extensionwould help to underpin demand for new homes for the next sixyears "and that gives us the confidence".
The Help to Buy scheme has greatly benefited thehousebuilders by accelerating Britain's housing recovery andshoring up demand to boost selling rates and profits. It hasalso allowed a number such as Persimmon and TaylorWimpey to unveil plans to hand out cash to shareholders.
The extension also illustrates how the debate over Britain'shousing shortage has crept to the top of the political agenda,with elections just over a year away. (Reporting by Brenda Goh; editing by Kate Holton)