Mark Prisk earmarks over £1.1m for first self-build schemes

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

The first schemes set to receive a slice of a new £30 million self-build investment fund have been earmarked for approval, according to the housing minister.

Speaking at a special self-build workshop for local authority leaders in London, Mark Prisk said that the first projects would benefit from over £1.1m to start work on up to 20 self-build plots.

The £30m fund, announced in last year’s housing strategy, can be used to part fund land acquisition and early development costs with money being repaid on completion of the project. The cash, says ministers, provides short-term finance to help unlock projects where groups of self-build homes are built at the same time.

Following final checks and approvals, the applications in North East Derbyshire – for nine self build plots in Morton with a value of £450,000 – and Peterborough – 11 plots with a loan value of £725,000 – will be the first to receive the funding.

Both approvals are subject to final due diligence and contract. 

A further application for funding has been received for a multi-unit self build development on a site in Derbyshire and ministers say the Homes and Communities Agency is in discussion with several other project promoters who are seeking to apply for funding with more applications expected before the end of the year.

According to Government figures, around 13,800 custom homes were completed in the UK in 2010/11.

Mr Prisk said that there had been a great surge of interest in recent years for self-build, and it was now important that local authorities learnt from abroad and local projects to identify opportunities for self-build development in their plans, and to give people in their area the opportunity to build their own home.

He said: “...these types of projects have often been held back because of limited land availability, reluctance by lenders to provide finance and red tape. So I’m delighted that the first self-build projects in Derbyshire and Peterborough have been earmarked for Government cash.

“This money will be repaid as plots are sold, and I hope it will demonstrate to lenders, investors and the development industry that these types of projects are worth backing. But it’s not just about money, self builders and developers need the support of local authorities to get these projects off the ground. So I’m pleased we have the team from Almere to share their expertise, and I urge local authorities to learn from their example and help more self builders achieve their dreams.”

The £30m fund will be available over the next three years (2012 to 2015). Funding is available to cover the cost of building, land acquisition or other costs associated with a proposed development of five or more custom build homes with planning permission. The funding is available to eligible applicants bringing forward projects in England with the exception of London. Separate funding arrangements are available for London.