By Neil Merrick
30 July 2009
Efforts to revive the house building industry moved up a gear this week with publication of a short list of 270 stalled schemes eligible for Kickstart programme funding.
A total of £925m will be allocated to projects across England under the first wave of the £1bn programme, which is designed to finance building projects halted by the credit crunch. The programme, announced in this year’s Budget and expanded last month in the Building Britain’s Future announcement, is being run by the Homes and Communities Agency.
About half the money is being offered as repayable loans or equity financing, while £209m will be granted for extra social rented housing.
Announcing the short list on July 27, housing minister John Healey said the schemes, mostly put forward by housing associations or private developers, would lead to the construction of more than 22,000 homes and create about 20,000 jobs.
‘This is not a hand-out to developers. There are tough terms to this deal including repayment of loans within five years,’ he said.
‘I want to see builders back on these sites within weeks.’
Proposals include an urban extension to Corby, Northamptonshire, and schemes in Macclesfield and north Bristol. The largest number of projects (54) is in northwest England. Successful bids will be announced from mid-August.
Stewart Baseley, executive chair of the Home Builders Federation, said government investment would support schemes that stalled because of the mortgage crisis and wider economic problems, and leave the industry better placed for when the economy recovers.
Figures published on July 24 by the National House Building Council showed that housing associations in England applied to build 7,492 homes in the second quarter of this year – down 13% on the same period in 2008. Applications by private builders were down 34%.
30 July 2009
Efforts to revive the house building industry moved up a gear this week with publication of a short list of 270 stalled schemes eligible for Kickstart programme funding.
A total of £925m will be allocated to projects across England under the first wave of the £1bn programme, which is designed to finance building projects halted by the credit crunch. The programme, announced in this year’s Budget and expanded last month in the Building Britain’s Future announcement, is being run by the Homes and Communities Agency.
About half the money is being offered as repayable loans or equity financing, while £209m will be granted for extra social rented housing.
Announcing the short list on July 27, housing minister John Healey said the schemes, mostly put forward by housing associations or private developers, would lead to the construction of more than 22,000 homes and create about 20,000 jobs.
‘This is not a hand-out to developers. There are tough terms to this deal including repayment of loans within five years,’ he said.
‘I want to see builders back on these sites within weeks.’
Proposals include an urban extension to Corby, Northamptonshire, and schemes in Macclesfield and north Bristol. The largest number of projects (54) is in northwest England. Successful bids will be announced from mid-August.
Stewart Baseley, executive chair of the Home Builders Federation, said government investment would support schemes that stalled because of the mortgage crisis and wider economic problems, and leave the industry better placed for when the economy recovers.
Figures published on July 24 by the National House Building Council showed that housing associations in England applied to build 7,492 homes in the second quarter of this year – down 13% on the same period in 2008. Applications by private builders were down 34%.
