£624m worth of loans available for housing
By Leila Steed12 November 2021
The UK Government has made £624 million in loans available to housing developers across the country, as part of plans to deliver on its £10 billion housing fund commitment.
The loans are intended to help both small and large developers finance new housing projects, which in turn will create “vibrant communities”, boost small businesses and create thousands of jobs, the Government said.
Designed to “pave the way for up to 116,000 new homes” and to help “level up” communities by unlocking land - particularly brownfield sites - for regeneration, the loans will also be used for the building of new schools and for transport improvements.
Housing Minister Christopher Pincher said, “We are building the right homes in the right places so more young people and families can get on the housing ladder.
“Improving transport links, building schools and health facilities are key to unlocking new homes and creating vibrant places where communities can thrive.”
According to the Department for Levelling Up, Housing and Communities, the funding is part of £2.2 billion of loan financing that was made available at Spending Review 2020 to support infrastructure and drive housing supply.
Its release comes just a month after the Government allocated £58 million from the Brownfield Land Release to local councils for the development of new housing on unused and derelict land.
The loans are available to companies through the existing Home Building Fund supply programme for developers, which is administered by Homes England.
Peter Denton, Chief Executive of Homes England, said, “This new infrastructure funding will be a powerful catalyst for creating new homes, places and communities.
“It gives us the resources we need to back more developments like Houlton in Rugby, where a £35 million funding injection has helped to create new primary and secondary schools, a link road to Rugby town centre, and wider infrastructure needed to build a community of up to 6,200 homes.”