Government lauches new funding for stalled housing projects

The Government has announced substantial new investment to support housing projects which are struggling to achieve the necessary investment through conventional means. The investment could help provide much-needed new housing for some communities and help those areas that have seen housing development begin and then be abandoned because of the financial crisis.

The £50m Local Growth Fund (Housing Infrastructure) programme will be available during the 2015-16 financial year to private developers wishing to kickstart housing projects which have the support of Local Economic Partnerships and local authorities but which have not attracted investment from other sources. Developments of between 250 and 1499 units are eligible for investment. This is in addition to funding for as much as £1 billion loan funding available for developments of over 1500 units, through the Large Sites Infrastructure Programme which was announced last week, and the £150m Local Infrastructure Fund supporting housing and commercial development. All the funding programmes are intended to provide loan finance to developers on a fully recoverable basis.

Housing Minister Kris Hopkins said, "This substantial investment will lead to thousands of new homes across the country, and deliver new career opportunities in the growing construction industry."

A prospectus with further details of the fund has been published for local leaders, councils and housing developers. Local communities blighted by stalled housing development should be aware of this opportunity for government investment to be made available in their area. More information about the three investment funds can be found using the links below.

Local Infrastructure Fund

Local Growth Fund (Housing Infrastructure)

Large Sites Infrastructure Programme