Developers have been invited to apply for a share of at least £624 million of affordable finance to accelerate the construction of up to 116,000 new homes and public infrastructure.
The Government said the new funding – aimed at small and medium-sized housebuilders – should be used to kick-start new housing projects and transform “unsightly and derelict” brownfield sites.
Brownfield sites – usually disused or derelict land – are cheaper to buy, but as existing structures need to be torn down, there may be additional clean up and decontamination costs – making such sites less attractive to private financiers.
The loans will be administered by Homes England through the existing Home Building Fund, a housing supply scheme that makes finance available to developers, between 2021/22 and 2024/25.
Launched in 2016, the fund provides loans of £250,000 to £250 million to cover development or infrastructure costs. The developer must plan on building more than five homes to apply.
Commenting on the funding, Housing Minister Christopher Pincher said: “We are building the right homes in the right places so more young people and families can get on the housing ladder.
“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 added: “This new infrastructure funding will be a powerful catalyst for creating new homes, places and communities.”
More information about the Home Building Fund can be found here.
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