Details emerge about £5bn new housing funding
Conservative ministers are going to announce at Conference that two new housing finance pots will be launched. The first (£3bn) is targeted at smaller builders and is intended to assist in funding 25,000 homes by 2020. The second (£2bn) is targeted at public land and should fund 15,000 new homes.
It is safe to assume that all or part of the funding will be given as loans or investment rather than grant, and that it will be given out by Homes and Communities Agency rather than councils.
As previously noted, property companies, developers, public sector organisations and builders considering this funding should ensure that it fits in with their existing banking arrangements. If the funding is going to be secured against your site by a charge or mortgage you need to be sure that you can effectively charge all or part of your site. You should also pre-empt any questions HCA will ask about access, planning conditions, CIL/s106 and other issues affecting their willingness to lend. Feel free to get in contact.
Under the plans, the Government will a £3 billion Home Building Fund to help small family firms to build 25,000 new homes by 2020 and up to 225,000 in the longer term.
A separate £2billion loan fund will pay for a further 15,000 new homes by 2020 on surplus public sector land with extra cash, the ministers will say.
The cash will be used to encourage builders to use more modern building techniques which can deliver homes twice as quickly as conventional builders.”
