New investment to help smaller housing schemes get Britain building
29 Apr 2014 03:35 PM
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.
Further information
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: