By Neil Merrick
12 January 2010
Local authorities are to spend £246m building a further round of new homes after pledging to match government money with prudential borrowing.
This follows the announcement of the second round of awards under the government’s programme to boost house building. Housing minister John Healey confirmed on January 11 that 73 councils will receive grants totalling £123m to build 1,900 homes. This will include 35 councils that were also awarded money in round one.
The first round, announced in September, allocated grants worth £141m to 49 local authorities for 2,171 homes.
In each case, councils are required to match the money provided by the Home and Communities Agency with their own funds. Round two was heavily oversubscribed, with a total of 86 authorities bidding for roughly twice as much grant as was available.
Healey said councils across the country had demonstrated they were ‘ready and willing’ to build, often on disused land. To qualify for a grant, they must provide apprenticeship training and offer jobs to local people. ‘We’re using the power of public investment to help economic growth by building the homes we need and creating jobs and skills for the future,’ said Healey.
HCA chief executive Sir Bob Kerslake said it had been difficult to decide between the bids, with priority given to those promising high standards of energy efficiency. ‘The outcome is a really strong set of schemes that meet a high standard,’ he added.
Councils that received money in round one have either started work or are expected to do so shortly. Schemes in both rounds must be under way by March 2011.
Birmingham City Council received a further £5.4m on top of the £6.8m it was awarded in round one, allowing it to build a total of 230 homes.
John Lines, the council’s Cabinet member for housing, said: ‘We are in a recession but that will not hinder our progress to deliver the affordable homes that this city needs.’
A Local Government Association spokesman said the number of round two bids showed councils were keen to get involved in house building again and confident of raising money through prudential borrowing.
But the LGA also wants the government to speed up long-term reform of the housing finance system. It claimed the move would allow councils to build more than 300,000 homes over ten years once they retain all rent income and capital receipts.
12 January 2010
Local authorities are to spend £246m building a further round of new homes after pledging to match government money with prudential borrowing.
This follows the announcement of the second round of awards under the government’s programme to boost house building. Housing minister John Healey confirmed on January 11 that 73 councils will receive grants totalling £123m to build 1,900 homes. This will include 35 councils that were also awarded money in round one.
The first round, announced in September, allocated grants worth £141m to 49 local authorities for 2,171 homes.
In each case, councils are required to match the money provided by the Home and Communities Agency with their own funds. Round two was heavily oversubscribed, with a total of 86 authorities bidding for roughly twice as much grant as was available.
Healey said councils across the country had demonstrated they were ‘ready and willing’ to build, often on disused land. To qualify for a grant, they must provide apprenticeship training and offer jobs to local people. ‘We’re using the power of public investment to help economic growth by building the homes we need and creating jobs and skills for the future,’ said Healey.
HCA chief executive Sir Bob Kerslake said it had been difficult to decide between the bids, with priority given to those promising high standards of energy efficiency. ‘The outcome is a really strong set of schemes that meet a high standard,’ he added.
Councils that received money in round one have either started work or are expected to do so shortly. Schemes in both rounds must be under way by March 2011.
Birmingham City Council received a further £5.4m on top of the £6.8m it was awarded in round one, allowing it to build a total of 230 homes.
John Lines, the council’s Cabinet member for housing, said: ‘We are in a recession but that will not hinder our progress to deliver the affordable homes that this city needs.’
A Local Government Association spokesman said the number of round two bids showed councils were keen to get involved in house building again and confident of raising money through prudential borrowing.
But the LGA also wants the government to speed up long-term reform of the housing finance system. It claimed the move would allow councils to build more than 300,000 homes over ten years once they retain all rent income and capital receipts.
