Over 160 smaller housing developments across the country have been shortlisted for loans from the £525 million pound Builders Finance Fund, which is intended to get stalled sites back up and running with new homes being built. The first wave of sites with potential to support over 13,000 new jobs are about to be accelerated into operation.
Other developers are invited to put in their bids over the coming months as part of a Government scheme to release and unlock new homes being built. These are schemes which have already been started and / or planned where finance has been the issue in order to get the developments back up and running.
The Government’s long term plan in supporting businesses who are creating job opportunities and also building homes to help alleviate the “perceived” shortage of new homes. This was launched in April and was set up to unlock “shovel ready” sites for up to 250 homes down to smaller schemes where as few as 15 units are proposed. These are schemes which have the support of local people but need financial help to get going.
The funding is intended to be given on the basis of loans which the developer will pay back on completion and sale of homes. The funding release is now being issued subject to due diligence at the sites listed.
Mr George Osborne MP (the Chancellor of the Exchequer) said “I am pleased to see progress with the Builders Finance Fund which will help unlock thousands of stalled housing units by providing house builders with access to finance.”
The schemes themselves range from areas such as Ashford in Kent to Pelynt in Cornwall and include schemes in Cheshire, Manchester, Liverpool, Sunderland, Newcastle, Leeds as well as many other places throughout the country.
For many smaller to middle sized schemes, which have been held in abeyance for some years, the finance trap could be alleviated by this scheme. In certain localised areas, this scheme will have a significant positive effect.