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

Aaron Morby 6 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

Race starts for £570m Birmingham HS2 station

HS2 opts for a two-stage bid process for landmark Birmingham station
2 days ago

Stepnell streamlines to meet “challenges ahead”

Another regional boss exits as contractor restructures
2 days ago

HS2 must start by March to avoid serious cost rises

NAO report reveals reducing risk on contractors has saved £1bn
2 days ago

Midas hires ex-McLaren regional boss

Steve Hart heads up Midas Group residential arm
2 days ago

Asbestos hotel lands contractor in court

HSE inspectors swoop on refurb site
2 days ago

Wates giving ex-offenders a chance on site

Prison programme helps solve site skills crisis
2 days ago

Cumbrian contractor Mayson Bros in administration

MB, set up 28 years ago, employed more than 100 workers at peak
3 days ago

416-bed Bristol student scheme gets green light

Work to start shortly at former Bristol Royal Infirmary Site
3 days ago

London twin tower flats plan switches to 600-room hotel

Reworked 25-storey Albert Embankment project backed by planners
3 days ago

Historic London markets to move to Dagenham

Billingsgate, New Spitalfields and Smithfield to get new home together
3 days ago

Trio selected for £135m Meridian Water civils packages

BAM Nuttall, Vinci and VolkerFitzpatrick in for London Lee Valley infrastructure work
3 days ago

Plans in for 1m brick monument of hope

Construction of The Wall monument is planned to start later this year
3 days ago

Berkeley development head joins offsite specialist

James Pikett to lead land acquisition drive for sustainable homes schemes
3 days ago

Major contractors to stop using dodgy umbrella companies

Big names sign charter to protect employment rights and promote equality
4 days ago

Berkeley to boost construction by 50%

Cash rich housing giant to hand out extra £455m to shareholders
4 days ago

30 jobs to be axed as Sanderson Contracts shuts down

Yorkshire contractor collapses while working on two Easy Hotel projects
4 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Van Elle profit slides in first-half

Slowdown in rail work hits margins but revenue grows 13% on higher housing demand
4 days ago

Amey hires collapsed glazing contractor boss

Craig McGilvray joins Amey to head FM and defence arm just a week after FGS collapsed
4 days ago

Willmott Dixon nabs £20m Humberside police hub

Work to start in autumn on new operational support building
4 days ago

Multiplex gets start date for £86m Glasgow Uni block

July start for postgraduate hub and business school building
4 days ago

Laing O’Rourke to build Gary Neville’s £200m tower scheme

Work to start this summer on St Michael's complex in Manchester.
5 days ago

Late payment bill to enforce 30-day terms

Latest legislation aims to outlaw abuse of subcontractors and supply chain finance schemes
5 days ago

Building safety police force to be run by HSE

Government promises "biggest change in building safety for a generation."
5 days ago

Report submitted on Shaylor directors following collapse

Latest update holds out little hope for more money for trade contractors owed £19m
5 days ago

Green light for new stand at Emirates Old Trafford

Lancashire Cricket Club will have the largest ground outside of London
5 days ago

SME contractors to have their say on CITB levy

CITB training system branded a "billion pound bodge job"
5 days ago

Green light for £137m Midland Metro eastside extension

New 1.7km Birmingham Eastside Extension will connect planned HS2 station at Curzon Street
5 days ago

HS2 review slams project team as costs could hit £106bn

Oakervee review to give "lukewarm" backing to project
6 days ago

Demolition winner for vast Elizabeth House job

Fierce competition for demolition package to pave way for new 31-storey tower at Waterloo
6 days ago

Contractor services