Budget: £500m Builders Finance Fund for small housing projects

Aaron Morby 11 years ago
Share

The Chancellor set out plans to give smaller house builders access to a £500m fund to stimulate small local projects.

The finance pot formed part of a set of measures that George Osborne claimed would support building of 200,000 new homes.

Until now Government guarantee schemes were limited to support for major infrastructure projects being developed by major house builders.

In 1988 two-thirds of all new homes were built by small and medium sized builders, but that figure now stands at less than a third.

The Builders Finance Fund hopes to galvanise local housing projects with  loans to smaller housing developers.

It estimated that the fund will unlock 15,000 housing units stalled due to difficulty in accessing finance.

He said that the Government would also back three vast housing schemes: a garden city at Ebbsfleet, and schemes at Barking and Brent Cross to help get Britain building again.

He reiterated plans to extend Help to Buy to 2020, supporting construction of an estimated 120,000 new homes.

Osborne said the second element of Help to Buy, the mortgage guarantee for buyers, will now run until 2016.

“Taken all together, the housing policies I announce today will support over 200,000 new homes for families. We’re getting Britain building.” said Osborne.

Trio of flagship housing schemes

The government will work with London’s Mayor to extend the Gospel Oak to Barking Line to Barking Riverside. Osborne said public investment would unlock construction of up to 11,000 new homes.

It will also work with the GLA and the London Borough of Barnet to look at proposals for the Brent Cross regeneration scheme, subject to value for money and affordability.

This scheme has the potential to deliver between 7,500 and 10,000 homes, up to 20,000 jobs and about £4.5bn of economic investment.

The Government will set up a dedicated urban development corporation to drive forward the creation of Ebbsfleet Garden City, with a £200m of infrastructure fund to kick start development.

This will represent the first new garden city since Welwyn Garden City in 1920.

Osborne said the government would also publish a prospectus by Easter, setting out how local authorities could develop their own, locally-led proposals for bringing forward new garden cities.

The Government will also create another £150m fund to kick start the regeneration of large social housing estates.

He also said the Government would consult on a new ‘Right to Build’ to give custom builders a right to buy a plot from councils.

Government will test the new model with a small number of councils.

A new £150m Serviced Plots loan fund will help provide up to 10,000 serviced plots for custom build.

Councils will need to work with contractors or builders to access the fund. The Government will also look to make the Help to Buy equity loan scheme available for custom build.

Latest news

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
22 hours ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
2 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
21 hours ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
22 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
2 days ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
21 hours ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
2 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
2 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
2 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
3 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
2 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
3 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
3 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
3 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
3 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
3 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
4 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
4 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
4 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
4 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
4 days ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
4 days ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
4 days ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
4 days ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
1 week ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
1 week ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
1 week ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
1 week ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
1 week ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
1 week ago

Contractor services