- House builders can now apply for a share of at least £624
million loan financing to pave the way for up to 116,000 new
homes
- Funding to improve transport, build schools and unlock land
for new housing where it is most needed, with a key focus on
transforming brownfield land
- This will help level up communities, boosting small
businesses and creating thousands of jobs
Communities across England will be transformed with new schools,
health services and transport links to support the delivery of
thousands of new homes, the Department for Levelling Up, Housing
and Communities (DLUHC) announced today (5 November 2021).
Loan funding of at least £624 million will be available for house
builders, including SMEs, to improve the vital infrastructure
needed to kick-start new housing projects, with a particular
focus on transforming unsightly and derelict brownfield sites.
Redeveloping underused land for new homes and improving public
services is a key part of the government’s mission to level up
the country and create vibrant communities where people want to
live and work.
This loan funding paves the way for up to 116,000 new homes to
support people on to the housing ladder, and will boost smaller
building firms and create thousands of new jobs.
Housing Minister Rt Hon MP said:
We are building the right homes in the right places so more young
people and families can get on the housing ladder.
Improving transport links, building schools and health facilities
are key to unlocking new homes and creating vibrant places where
communities can thrive.
This money will build on our commitment to bring derelict and
abandoned sites back to life, regenerating towns and cities as we
level up across the country.
Chief Executive of Homes England Peter Denton said:
This new infrastructure funding will be a powerful catalyst for
creating new homes, places and communities.
It gives us the resources we need to back more developments like
Houlton in Rugby, where a £35 million funding injection has
helped to create new primary and secondary schools, a link road
to Rugby town centre, and wider infrastructure needed to build a
community of up to 6,200 homes.
The funding is part of the £2.2 billion loan financing made
available at Spending Review 2020 to support infrastructure and
drive housing supply.
Loans will be administered by Homes England through the Home
Building Fund - an existing housing supply programme that makes
loan finance available to developers.
Last week at Spending Review a further £1.8 billion to regenerate
brownfield land and deliver transport links and community
facilities was announced.
The funding boost meets the government’s manifesto commitment to
a £10 billion housing fund and will help unlock 1 million new
homes.
In addition, last month the government allocated £57.8
million through the Brownfield Land Release Fund for local
councils to remediate and transform unused and derelict land into
new homes.
Further information
The funding, to be committed from 2021/22 to 2024/25 with terms
of up to 20 years, will enable a continuation of the existing
Home Building Fund.
Loan financing provides private sector partners with long-term
finance that will help to deliver the infrastructure and land
assembly needed to accelerate new homes and drive housing supply
in the long term.
The funding supports the government’s mission of delivering up to
300,000 new homes a year by the mid-2020s by unlocking housing
supply in the areas of greatest need while also stimulating
economic and long-term growth.
