This takes the so-called Get Britain Building fund total to £570m of development finance. Funding will be provided through recoverable investments, with the majority being commercial loans that will be returned to Treasury coffers.
The fund was three times over-subscribed and the Homes and Communities Agency has produced a shortlist of 224 projects from nearly 400 bids, based on perceived value for money, how quickly they can be delivered and the level of local lobbying. The list includes a high proportion of developments by smaller and medium sized builders. Among them are:
- 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
These will now be assessed through due diligence before funding is allocated and formal contracts signed.
The £570m fund is targeted at commercially viable, shovel-ready sites with planning permission already in place.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 projects are 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."
Industry reaction
The additional £150m was described as a welcome boost by the Federation of Master Builders (FMB) but cuts in red tape are still needed, it said.
FMB chief executive Brian Berry said: “With new housing starts having dipped below 100,000, it is essential that the government does all it can to support delivery across the whole of the industry. However, the extra money needs to be coupled with reforms to the planning system to make it simpler and faster as well as action to reduce the regulatory burden on house builders to remove the obstacles to the delivery of new homes. The ad hoc accumulation of burdens on small house builders has resulted in a 69% reduction in the number of small firms delivering new housing. These firms used to deliver two thirds of our new housing but now they only deliver a third.”
Mr Berry added: “If we want to provide the housing that our growing population desperately needs the government needs to lighten the load on small house builders to help them stay in business. The government needs to urgently review all new regulations planned for the house building sector to ensure they do not frustrate the delivery of the homes, jobs, and growth that this country needs.”
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