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Mark Prisk to unlock funds for 15,000 new affordable homes

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Mark Prisk to unlock funds for 15,000 new affordable homes

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Published by Max Salsbury for 24dash.com in Central Government and also in Development, Finance, Housing

House-building activity 'fails to lift construction gloom' House-building activity 'fails to lift construction gloom'

Housing minister Mark Prisk will today unlock a £225m government fund to help develop an extra 15,000 affordable homes across the country.

The cash, which will be managed by the Homes and Communities Agency (HCA), will be made available to England's affordable housing providers who will be able to bid for a share.

The Government's Affordable Homes Programme is set to deliver 170,000 new homes by 2015. Almost 63,000 have already been completed.

The fund is intended to work alongside the Government’s Affordable Housing Guarantee, which reduces the risk for lenders by providing a government pledge to underwrite debt taken out on eligible housing projects.

Providers can apply to combine today's cash with the Guarantee. A share of the £225million funding can be used as a grant towards a project, while the Guarantee allows them to borrow the remaining finance at below market lending rates.

Mr Prisk said: “Today’s £225 million fund will not only provide a financial boost for successful housebuilding projects, it will also unlock vital private finance to get spades in the ground and workers on site.

“Paired with the ground-breaking Affordable Housing Guarantee, this cash injection will help get Britain building, delivering up to an additional 15,000 of the high-quality affordable homes this country wants and needs.”

Richard Hill, interim CEO of the HCA, said: “We welcome any initiatives to boost affordable housing supply and support Registered Providers to secure loan finance to get their schemes off the ground. We’re pleased to be able to provide further details of how they can bid for a share of the £225m of funding that will help deliver additional affordable homes, and how they will be able to benefit from the Government’s Affordable Homes Guarantee.”

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