HCA praises house building industry's response to Kickstart Programme

The house building industry’s ‘appetite and capacity to develop’ has been demonstrated by the tremendous response to the Homes and Communities Agency’s £1 billion Kickstart Programme, the HCA said today.

Up to 22,400 additional new homes could be built across England through 270 schemes shortlisted in a bid to unlock stalled housing development affected by the economic downturn.

Funded by the Homes and Communities Agency (HCA) the Kickstart Programme will speed up the delivery of much-needed new and affordable homes, maintaining momentum in housing supply. Around 8,600 of the homes will be for affordable rent or sale.

The 270 shortlisted schemes, between them seeking over £900 million of funding, will now be subject to a due diligence process to test assumptions and further explore risk and deliverability before the HCA confirms if it will support each scheme. The level and form of investment to support successful schemes will be announced on a rolling basis from mid August onwards.

HCA chief executive, Sir Bob Kerslake, said: “The response to our bidding process shows the level of appetite and capacity for development which is out there in the house building sector. Despite the economic downturn, demand for new homes remains and with some help, quality schemes can be unlocked, adding to new supply very quickly.

“In coming to this shortlist we’ve taken care to look at each scheme’s quality and fit with locally identified priorities. Kickstart may be housing led but ultimately it’s all about thriving communities and homes of the right type, in the right place, and for the right people are what we are looking for.

“We need to move quickly, not only to help those looking for a new home, but also to keep momentum going within our important house building industry.”

Stewart Baseley, executive chairman of the Home Builders Federation, said: “This is an important announcement for the home building industry that will see work starting on sites that could not previously progress because of the wider economic crisis and collapse of mortgage availability.

"It will help boost jobs in house building and the supply chain, rebuild housing output and protect capacity so that the industry is better prepared for the recovery.”

The 270 shortlisted schemes are promoted by a range of developers – including national and local house builders and RSLs – across every region. A total of 53 local authorities areas are covered by the shortlisted bids, with the North West region having the highest number of schemes.

Nearly two thirds of the schemes are anticipated to be Code Level 3 or higher, demonstrating the degree to which the industry is increasingly adopting the Code in its mainstream activities.

Having already made an initial assessment of each bids quality and fit with local priorities, the due diligence process will now address the HCA’s requirements around good design, value for money, financial viability and risk, as well as an assessment of quick delivery. CABE will advise on the design element of the bids. A second Kickstart bidding round will be launched in September.

However, Sir Bob stressed that the Kickstart Programme should not be seen as the only route to mitigating against the effects of the market downturn, adding: “There isn’t one single solution to keeping house building going to meet housing demand and need.

"Kickstart needs to be seen alongside our other measures like local authority direct development, the private rented sector, our flexibility and tailored packages, and work with lenders around funding and mortgage availability.”