Over half a billion pounds of new investment for smaller housing schemes will help build up to 15,000 homes, Housing Minister Kris Hopkins has announced.
The £525 million Builders Finance Fund is an essential part of the government’s long-term economic plan. It will accelerate construction on smaller sites, support 15,000 jobs in construction and sustain hundreds of British businesses.
Mr Hopkins said the collapse of the unsustainable housing boom in 2008 had devastated the construction industry, leading to the loss of 250,000 jobs, and a falling market share for the nation’s smaller builders.
Speaking at the Home Builders Federation, he said housebuilding is at its highest level since 2007 and climbing, but the government wants smaller housing schemes to play a bigger role in boosting the supply of new homes.
The new investment will be made available to unlock “shovel-ready” sites between 15 to 250 homes, which have their plans in place and the support of local people, but need a bit of help to get development moving.
All developers will be able to apply for funding, but the focus on smaller schemes will benefit smaller firms who typically build on these sites. A prospectus published today will help housebuilders prepare their bids.
Every home built under the scheme will support a person’s job. That means 15,000 job opportunities, and a boost for hundreds of small businesses that supply building materials to developers.
Almost a million independent firms are involved in the construction industry, accounting for 20% of all small and medium-sized companies, and businesses that supply building products have an annual turnover of more than £50 billion, which contributes 4.5% to the UK’s Gross Domestic Product.
Housing Minister Kris Hopkins said: "This government has got Britain building again, and created thousands of jobs in the construction sector. But it has been harder for smaller schemes to come back from the crash of 2008 and, as part of our long-term economic plan, we want them to have a bigger role in building homes for the housing market.
"From today developers can start preparing their bids for a share of £525 million to accelerate development on shovel-ready schemes of 15 to 250 homes. This funding will get workers back on site, support 15,000 jobs across the construction industry, and build thousands of new homes for communities up and down the country.
Smaller housing schemes are also benefiting from measures to help homebuyers. Over 1,900 small and medium sized builders have signed up to offer homes through the Help to Buy: equity loan scheme, which is helping over 20,000 households get on the property ladder.
Support through the Builders Finance Fund will be on top of £1 billion that has been made available to unlock 250,000 homes on large-scale developments with over 1,500 units, and £50 million that will support housing infrastructure and help local enterprise partnerships play a key role in delivering homes in their areas. Both schemes are currently open for bids.
Over 420,000 new homes have been delivered since 2010, including 170,000 affordable homes.
