Derelict sites to be transformed into new homes as new brownfield fund opens

• Over 17,000 new homes will be created with £180 million new brownfield fund

• Councils will be able to bid for first £40 million from today, further £140 million allocated over next 2 years

• Builds on success of previous £77 million fund to support the regeneration of unused brownfield sites

Derelict and underused brownfield sites across England will be transformed into thousands of new homes, creating thriving communities and levelling up the country - the Department for Levelling Up, Housing and Communities announced today (8 July 2022).

From today, councils will be able to apply for a share of the new £180 million Brownfield Land Release Fund 2, which will help to transform disused urban areas into 17,600 new homes and create around 54,000 jobs over the next 4 years.

An initial £40 million is available to support local regeneration projects, releasing council land for around 4,000 new homes (and creating 12,400 jobs). The move will boost local economies and help thousands of young people and families into homeownership. The remaining £140 million of the Brownfield Land Release Fund 2 will be made available to councils over the next 2 years.

The scheme forms part of the government’s plan to level up communities across the country and turn unloved areas into new places for people to live and work

Minister for Government Efficiency Jacob Rees-Mogg said:

Opening up this land is a fantastic opportunity for regeneration, improving government efficiency and playing a vital role in tackling the housing shortage while increasing home ownership. I am pleased to see this work is being delivered, after many attempts over the decades.

This will provide a boost to the economy, foster the creation of thousands of jobs, and it is also the opportunity to convert derelict and unloved land into beautiful new hamlets or villages, which will give many young families their first step on the housing ladder.

The fund aims to support the transformation of small council-owned sites that have been previously developed, by funding small scale infrastructure and remediation work to enable the release of the land for new homes.

This builds on the success of the first Brownfield Land Release Fund which saw £77 million go to councils across the country to release brownfield sites for around 7,750 new homes, examples include:

• As part of this, the Lancashire One Public Estate partnership £670,000 to support the remediation of land at Griffin Housing Regeneration site in Blackburn. This enabled the phase 1 development of the site to progress and deliver 140 new homes for affordable rent or shared ownership.

• In Blackpool, £400,000 provided a new traffic system for a development at Ryscar Way. The improved road access opened up land for 51 new homes.

• In Rotherham, £300,000 unlocked the sites of 2 former adult care residential facilities to provide 44 new homes for first-time buyers and older people in the local area.

As with the previous scheme, the new fund will be delivered through the One Public Estate partnership between the Department for Levelling Up, Housing and Communities, the Office of Government Property and the Local Government Association.

Councils will be able to draw on their understanding of local needs in determining the type, tenure and delivery approach for the new homes. They have until 19 August 2022 to submit applications via the designated accountable body of their local OPE Partnership.

Further information

Bids will be assessed on a number of gateway criteria including: market failure; deliverability; and value for money.

The prioritisation of bids will comprise an assessment of the strategic case, innovation and consideration of the bid’s ability to meet the council’s Public Sector Equality Duty, combined with a place-based metric.

To support the development of new Local Plans, councils will receive additional points where they can demonstrate that they are supporting the plan making process.

The capital grant funding is available to all English councils. Mayoral Combined Authorities (MCAs) and the Greater London Authority (GLA) are eligible, as are their constituent councils.

Further information about applications to the second round of the Brownfield Land Release Fund is available on the Local Government Association website.