But questions remain over when the funding will be released and the seeming lack of any major new initiative to boost house construction in today’s long-awaited autumn statement.
“There’s some good stuff in the statement but I’m still trying to see a vision for growth in it,” said British Woodworking Federation chief executive Iain McIlwee.
“Investing in schools is a good thing but the question is when is it going to happen. We’re still waiting to see the results of the last £5bn capital investment increase.”
The chancellor also announced £474m to invest in England’s infrastructure, including £225m to accelerate the delivery of large housing sites, supporting around 50,000 homes.
Included in the pledge is £190m to de-risk public sector land to enable the quicker disposal of public sites for new homes. Another £100m will bring forward public sector sites for development.
"We welcome the fact that the UK government still sees the construction industry as one of the major opportunities for investment to trigger economic growth," added UK Timber Frame Association chief executive Andrew Carpenter.
"But the figures show that the investment over the next three years is relatively small given the extent that the industry has shrunk in recent times."
"We do also welcome the increase in the Annual Investment Allowance to encourage investment in plant and machinery, particularly given that Building Information Modeling technology is set to be increasingly important in the sector in coming years."
The Federation of Master Builders welcomed the £5bn capital investment but said the chancellor should have lowered VAT on RMI work to encourage homeowners to take advantage of the Green Deal, as well as done more to support housebuilding.
