Housing minister says £925m fund will lead to 22,400 homes and 20,000 jobs being created
The government has released a list of 270 stalled building projects in 52 local authorities which are to share £925m of funding through its Kickstart scheme, provided they survive viability tests.
John Healey, the housing minister, said the money would lead to the creation of 22,400 homes and 20,000 jobs. He said 8,600 homes would be available for low-cost rent or low-cost ownership.
The money was released as part of the housing pledge in Building Britain’s Future, announced last month.
The government said the cash was not a handout, since most of it would have to be repaid within five years. Just 18% will consist of direct funding grants to support developers.
Only mothballed schemes which cannot get money from elsewhere will be funded. There are shortlisted projects in all regions, according to the government.
“The government funding will boost development funding available, reduce levels of risk associated with projects and help support demand from homebuyers through measures such as Homebuy Direct,” the communities department said in a release.
The projects will now go through an assessment process including due diligence, risk and financial position. Contractors will have to be able to start on site within the year, although Healey said he wanted to see builders back on site “within weeks”.
Healey announced a further round of Kickstart funding with bidding to start in September.
Shortlisted schemes include:
- Stanion, an urban extension to Corby, planned to deliver 1,200 homes
- An 82-home scheme in Macclesfield, seeking to achieve level six of the Code for Sustainable Homes
- Crayford Town hall in Bexley, suitable for housing development, which could deliver up to 145 homes
- A mixed tenure scheme Alnwick in Northumberland, where a town centre scheme could bring forward up to 93 homes
- A scheme in north Bristol’s Growth point, which could create 149 homes and includes a new district centre and primary school.