Government’s £525 m Builders Finance Fund
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The dark days of 2008 are still being sorted out behind the scenes the work is set to start on nearly 13,000 homes which were stalled by the 2008 housing crash thanks to the Government’s Builders Finance Fund which has been announced.
160 smaller housing developments across the country which were stalled by the crash have been shortlisted for loans from the £525m fund, which will improve employment and get workers back on sites to build new homes.
The agreement of the funding will accelerate construction on the first contingent of sites with potential to support nearly 13,000 new jobs in the near future.
Lots more developers will be invited to put forward their bids over the coming months as part of a rolling programme to unlock the building of new homes.
Chancellor George Osborne 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 government’s long term economic plan is supporting businesses who are creating job opportunities, and in this case, building homes for hard working taxpayers up and down the country.
More about the finance fund
Launched in April, the Builders Finance Fund was set up to help unlock ‘shovel ready’ sites between 15 and 250 homes, which have the support of local people but need help to get development going.
The funding will come in the form of loans, which the developer will repay on completion and sale of the homes.
The £525 million Builders Finance Fund is designed to help restart and speed up housing developments between 15 and 250 units that have slowed down or stalled. Its main objective is to address difficulties in accessing development finance faced by some housebuilders, particularly smaller developers, and to help bring forward stalled but viable sites.
Funding is being made available on the basis that it is recoverable. It will make investments over 2 years from 2015 to 2016 through to 2016 to 2017 and will be operated as an open competition. This prospectus seeks bids from builders/developers taking forward smaller housing proposals.
Bidding for the fund will be launched on 14 May 2014 and expressions of interest are to be submitted by noon on 25 June 2014 to the homes and communities agency