HCA shortlists 105 schemes for stalled sites cash

Published by 24publishing for 24dash.com in Housing and also in Central Government, Local Government

The Homes and Communities Agency (HCA) has today revealed the 105 shortlisted schemes bidding for the second round of Get Britain Building investment, unlocking stalled sites across the country.

The £570m fund, part of the Government’s housing strategy, aims to unlock up to 16,000 new homes by providing housebuilders access to financial support on stalled schemes with planning permission.

The second round, which was opened up to schemes of just 15 homes, received 162 expressions of interest. These projects were assessed by the HCA – looking at value for money, deliverability and fit with local priorities – and the shortlisted schemes, which could unlock up to 7,000 homes, will now be invited to enter a due diligence process before contracts are signed.

Pat Ritchie, Chief Executive of the HCA, said: “The Get Britain Building programme is offering housebuilders the financial support to get stalled developments back on track, and I’m pleased that more than 100 projects can move forward to the due diligence phase.

“We listened to feedback from the sector and reduced the minimum scheme size to 15, and I’m therefore especially pleased that 20 smaller projects have come forward and the majority of bids have come from SMEs.

“These projects must now prove that they can be delivered quickly, provide value for money for the taxpayer and fit with local priorities. As well as building much-needed new homes, the work will create or protect jobs, and boost local economies.”

Round one schemes must complete by December 2014, while round two schemes have until March 2015.

Around £300m of recoverable investment has been allocated to more than 130 projects through the first round, which is expected to unlock up to 9,000 homes.

Get Britain Building is intended to address difficulties in accessing development finance faced by some house builders and to help bring forward sites with planning permission, but where viability is marginal, by sharing risk. It will operate by making loans available to projects on commercial rates, or taking equity stakes to share risk. The investment is recoverable over a two to five year period, and by March 2018.