Department for Communities and Local Government
New investment to help smaller housing schemes get Britain building
Over half a billion pounds of new investment for smaller housing schemes will help build up to 15,000 homes, Housing Minister Kris Hopkins announced yesterday (29 April 2014).
The £525 million Builders Finance Fund is an essential part of the government’s long-term economic plan. It will accelerate construction on smaller sites, support 15,000 jobs in construction and sustain hundreds of British businesses.
Mr Hopkins said the collapse of the unsustainable housing boom in 2008 had devastated the construction industry, leading to the loss of 250,000 jobs, and a falling market share for the nation’s smaller builders.
Speaking yesterday at the Home Builders Federation, he said "housebuilding is at its highest level since 2007 and climbing, but the government wants smaller housing schemes to play a bigger role in boosting the supply of new homes".
The new investment will be made available to unlock “shovel-ready” sites between 15 to 250 homes, which have their plans in place and the support of local people, but need a bit of help to get development moving.
All developers will be able to apply for funding, but the focus on smaller schemes will benefit smaller firms who typically build on these sites. Aprospectus published today will help housebuilders prepare their bids.
New jobs and more trade for small businesses
Every home built under the scheme will support a person’s job. That means 15,000 job opportunities, and a boost for hundreds of small businesses that supply building materials to developers.
Almost a million independent firms are involved in the construction industry, accounting for 20% of all small and medium-sized companies, and businesses that supply building products have an annual turnover of more than £50 billion, which contributes 4.5% to the UK’s Gross Domestic Product.
Housing Minister Kris Hopkins said:
This government has got Britain building again, and created thousands of jobs in the construction sector. But it has been harder for smaller schemes to come back from the crash of 2008 and, as part of our long-term economic plan, we want them to have a bigger role in building homes for the housing market.
From today developers can start preparing their bids for a share of £525 million to accelerate development on shovel-ready schemes of 15 to 250 homes. This funding will get workers back on site, support 15,000 jobs across the construction industry, and build thousands of new homes for communities up and down the country.
Help across the housing market
Smaller housing schemes are also benefiting from measures to help homebuyers. Over 1,900 small and medium sized builders have signed up to offer homes through the Help to Buy: equity loan scheme, which is helping over 20,000 households get on the property ladder.
Support through the Builders Finance Fund will be on top of £1 billion that has been made available to unlock 250,000 homes on large-scale developments with over 1,500 units, and £50 million that will support housing infrastructure and help local enterprise partnerships play a key role in delivering homes in their areas. Both schemes are currently open for bids.
Over 420,000 new homes have been delivered since 2010, including 170,000 affordable homes.
A prospectus published today will help housebuilders prepare their bids. Expressions of interest can be submitted to the Homes and Communities Agency from 14 May 2014 and must be in by midday on 25 June 2014.
The investment through the Builders Finance Fund will fund locally-supported housing. Applicants should have the support of the local community and local authority. Sites must have outline planning consent (including any relevant Section 106 Agreement) in place when they submit their bid. The site must also have an implementable planning consent in place by 31 March 2015, to enable development to commence for the benefit of local people.
The nature and form of schemes that apply for funding is a local matter. The local authority and community should determine the appropriate level of affordable housing, market housing and other uses as part of their wider aspirations for any site.
Bidders must confirm that residential properties financed through this Fund will be marketed in the UK.
The following infographic has also been published with this announcement:
Latest News from
Department for Communities and Local Government
Review of Blue Badge fraud as scheme is extended to those with ‘hidden disabilities’17/06/2019 12:12:00
Those with less visible disabilities will benefit from the biggest change in the Blue Badge scheme in 50 years.
Bio-tech gets boost with new Local Industrial Strategy for Greater Manchester13/06/2019 14:03:00
A new facility to transform manufacturing processes and make them more environmentally friendly, has opened today.
Businesses to pay rates bills that better reflect current property values13/06/2019 11:10:00
Business rates payers in England will have bills that more accurately reflect current property values under new legislation.
Government invests £142 million in building communities to deliver the homes the country needs12/06/2019 10:10:10
The money will be spent on widening bridges, building roads and connecting utilities so up to 8,500 properties can be built.
End to Metro Bank "no DSS" mortgages11/06/2019 14:20:00
Latest pledge from industry to end potentially discriminatory practices which deny good quality accommodation to those on benefits.
Prime Minister strengthens Northern Powerhouse with joint ministerial appointment10/06/2019 08:10:00
Appointment will see the Northern Powerhouse Minister’s oversight and coordination of local economic growth boosted to improve its impact for people and communities across the country.
Residents encouraged to have their say to improve building safety06/06/2019 13:10:00
The government is inviting views on a new building safety regime, as it seeks to bring forward new legislation to keep residents safe.
New national strategy to tackle Gypsy, Roma and Traveller inequalities06/06/2019 12:10:00
Communities Minister Lord Bourne launches a national strategy to tackle entrenched inequality and improve the lives of Gypsy, Roma and Traveller communities.