New build to get funding boost

The news came as the Prime Minister announced an extra £150m for the Get Britain Building fund - taking the total to £570m, paving the way for up to 16,000 new homes and supporting over 30,000 construction jobs and more in supply chains.

The Get Britain Building investment fund will get development finance directly to building firms.

Funding will be provided through recoverable investments with the majority being commercial loans, ensuring that money will be returned to be re-invested in other priorities.

The fund was three times over-subscribed and the Homes and Communities Agency has shortlisted the strongest bids from nearly 400, based on value for money, how quickly they will be delivered and the level of local support.

The list includes:

  • Marine Wharf, Lewisham - includes plans for 189 new homes
  • Marmaville, Kirklees - includes plans for 65 homes
  • Bromford Lane, Birmingham - includes plans for 42 homes
  • Royal Mills Phase 2, Ancoats, Manchester - includes plans for 128 homes
  • Finzels Reach, Bristol - includes plans for 204 homes
The successful bids, which include a high proportion of developments by smaller and medium sized builders, will now be thoroughly assessed through due diligence before funding is allocated and formal contracts can be signed.

The £570m fund is being targeted at commercially viable, shovel-ready sites with planning permission already in place to get them building again as soon as possible.

Ministers have already announced a shortlist of 18 difficult stalled sites for a share of the first £45m of this funding to get them back on track and build 1,300 homes.

Some of these key projects are already on track to start building from April 2012.

Housing Minister Grant Shapps said: "Housebuilding is absolutely vital for delivering more growth in the economy, yet hundreds of shovel-ready housing developments have been put on ice, because builders lack funds to get work going on site.

"The £570m Get Britain Building Fund will help end the deadlock by getting construction back on track for up to 16,000 homes across the country.

"Already some of our key sites are on track to get started next month and many more of the 224 projects shortlisted today will be up and running from June, helping to cement our economic recovery."

The announcement today is one of the range of measures from the government's housing strategy that include:

  • A £4.5bn on Affordable Housing programme, set to exceed expectations and deliver up to 170,000 new homes over the next four years.
  • The NewBuy Guarantee - announced last week - which has the potential to enable up to 100,000 prospective and existing homeowners to buy.
  • Government plans to release by 2015 formerly used public land with the capacity for 100,000 new homes.