UK Government

Communities and Local Government:Healey: £83 million backing for first time buyers and housebuilding jobs

Press Release   •   Mar 09, 2010 10:22 GMT

Housing Minister John Healey has today announced £83 million to get building over 5,700 new and affordable homes stalled by the recession back on track.

Low cost homes for sale on sites across every region of the country are getting support today so more families can take their first step onto the housing ladder through the Government's HomeBuy scheme – which has already helped over 130,000 families buy their first home.

Crucially this cash will also get struggling housebuilders building homes again safeguarding over 1,700 jobs.

Because Mr Healey has made it a requirement that those receiving funding must provide apprenticeships and opportunities for local workers, today's cash will give 99 additional young people the chance to learn the building trade.

The Minister has already given 141 projects mothballed by the recession cash to get back on track and workers are back on site on many of these. Today's extra funding means nearly 5,700 homes are now going ahead and 1,700 jobs in the construction have been safeguarded – at a time when the industry needs all the help it can get.

Developers receiving cash today have committed to get workers back on site by this time next year, with almost a quarter saying they'll have workers back on site by the end of the month.

This support is not a handout though and comes on tough terms, with much of the money expected to be repaid within five years. Developers have also had to pass stringent value for money assessments carried out by the Homes and Communities Agency (HCA) to prove that each taxpayer pound is well spent.

As part of the Government's drive to make new homes cleaner and greener, priority has been given to those schemes which are set to meet high environmental standards, with the overwhelming majority of successful schemes meeting at least Level 3 of the Code for Sustainable Homes.

The numbers of successful projects receiving funding in each region can be viewed here: http://www.communities.gov.uk/news/corporate/1498184

Schemes receiving funding include:

• City Point, Derby - Morris Homes will receive £768,000 Kickstart funding to build 69 homes of which 33 will be affordable homes available through HomeBuy Direct on a former City College site near to Pride Park Football Ground.

• Crediton Road, West Devon - Persimmon will receive £1,772,250 funding to deliver 72 homes of which 61 are three- or four-bed family-sized homes.

• Hardwick Green, Stocton-on-Tees – Barratt will receive £1,116,900 Kickstart funding for 50 affordable homes that will all be available through the HomeBuy Direct scheme.

John Healey said:

"We're putting the weight of Government investment into building much-needed affordable homes, keeping people in work and giving young people a chance of apprenticeships.

"That's why today I'm allocating £83 million to get 87 stalled developments across the country up and running again, creating 1,700 jobs and giving more than 2,200 first-time buyers the chance to take an affordable step onto the property ladder.

"In this recession, the Government has not stepped back and left the homes and jobs we need to the market. We're using public funding to keep Britain building through the downturn."

Following today's announcement, Mr Healey has now allocated more than £3.6 billion for housebuilding since June, funding nearly 68,000 new homes, starting the largest council housebuilding programme for two decades and freeing up public land for housing.

Chief executive of the HCA, Sir Bob Kerslake said:

"With over 6,000 new and affordable homes now on their way to being completed through Round 1 of the Kickstart programme, this second round of funding will now help many more schemes to get back on track. The due diligence process for selecting these successful projects has been rigorous, assessing factors such as value for money, design, local fit and sustainability to help ensure the homes meet the needs of the people who will live in them."

Notes to editors

1. The full list of successful projects for Kickstart funding is available from the Homes and Communities Agency and can be found at: www.homesandcommunities.co.uk/kickstart-round-two.


The locations of Kickstart Round One projects can be viewed here:http://www.bing.com/maps/?v=2&cp=60.059771522512996~3.5942502021249822&lvl=4&cid=98B6D46A3AB56F31!351

Please note: all Kickstart Round One locations are mapped according to postcode data and should be accurate to within 500m or to the Local Authority Area.

The locations of Kickstart Round Two projects can be viewed here:http://www.bing.com/maps/?v=2&cp=51.2~-0.609999999&lvl=6&cid=976091EF58DEF9E9!1230

Please note: all Kickstart Round 2 locations are mapped according to postcode data and should be accurate to within 500m or to the Local Authority Area. Unit numbers and allocation funding may be subject to change until contracts are signed.

2. John Healey's Youtube message about the announcement can be viewed here:http://www.youtube.com/watch?v=l4Nnc5UhtYo

3. The Kickstart programme is a key part of the Government's investment to help the housing market through the recession. It is designed to unlock housebuilding sites currently unable to proceed and support construction of high quality mixed tenure housing developments.

4. Kickstart cash is being used to get projects that have been mothballed in the current economic climate back on track where developers cannot find any other source of support. It will boost development funding available, reduce levels of risk associated with projects and help support demand from homebuyers through measures such as Homebuy Direct.

5. Successful schemes include:

North East

Whitworth Park
Barratts
Spennymoor, County Durham
£736,950
Whitworth Park is a key growth point site which has stalled due to planning difficulties and high upfront infrastructure costs. A further 3 phases of the development are planned which will deliver in total 405 units, with a planning requirement of a maximum of 20% affordable housing reflecting the relatively large amount of affordable housing in the district and therefore with a focus on larger family units for scheme. Kickstart funding will unlock the first phase which will consist of 50 units including 28 HomeBuy Direct units and 22 open market units. The project is supported by Durham County Council and delivers a range of unit sizes, predominantly family housing and good demand is anticipated. Furthermore the HBD product will expand the market for the site.

Hardwick Green
Barratt
Stockton-on-Tees
£1,116,900
Kickstart funding will unlocked a phase of 50 homes that will all be available through HomeBuy Direct. Hardwick Green was formerly a Local Authority housing estate which suffered from a range of social and economic problems, many of which are intrinsically linked to housing and the physical environment. Following a visioning exercise by the Council it was decided to remodel the estate and the scheme unlocked by Kickstart is part of this remodelling of the estate.

North West

Waterside Village
Morris Homes
St Helens
£694,950
Kickstart funding to deliver 32 HBD properties and 51 units for market sale on a 83 unit development at Waterside Urban Village in St Helens. This project is the second of 6 phases proposed for this site. The total number of homes in the overall scheme is 363. The Waterside Urban Village scheme is one of three urban villages within St Helens and the council believes that these villages are key to the continued economic regeneration of the Borough.

Billinge Greenfields
Persimmon Homes North West
Greenfields, Billinge
£748,500
Kickstart funding will unlock a phase of 50 housing units of which 31 are HomeBuy Direct, with the remainder being market sale, which stalled due to market conditions. The wider scheme will provide a total of 217 homes in an area that has good demand for family homes and is considered a desirable residential location by buyers and agents.

Fleetwood Harbour
Redrow Homes Lancashire
Fleetwood, Wyre
£953,588
This brownfield site has been remediated in preparation for residential redevelopment and Kickstart funding will unlock the first phase of development which will deliver 58 units, 15 of which will be HomeBuy Direct and 7 available for social rent. The unlocking of the first phase of development will also contribute to bringing forward the remaining phases outside of the Kickstart programme which make up the entire 380 homes site. This development will support the investment being committed to the regeneration and economic development of Fleetwood by providing new homes for both owner occupiers and those in need of affordable housing.

Yorkshire and the Humberside

Saxon Court
Redrow Homes (Yorkshire) Ltd
Moor Lane, Sherburn-in-Elmet, North Yorkshire
£538,620
Kickstart funding will unlock this scheme of 62 homes that will provide 15 HomeBuy Direct units, 22 affordable units and 25 open market units. The HBD Kickstart will enable a more competitive pricing strategy to be developed, which should stimulate interest in other private sales units on the site.

Phase 1, Former Yorkshire Traction
Persimmon Homes
Barnsley
£347,700
This is a 60 unit first phase of a 200 unit scheme, comprising in this first phase 16 HBD units and 44 market sale units. This development complements the gateway improvements to Station Road, a key gateway into Barnsley, and enables the inclusion of an element of tenure diversification on the site through HomeBuy Direct in this otherwise entirely market sale development.

Keighley Road
Redrow Homes (Yorkshire) Ltd
Halifax
£702,724
Kickstart funding will support the development of 30 HBD units as part of a phase of 70 units. The proposed scheme meets regional priorities and is strongly supported by the Local Authority (Calderdale Council) on the basis that it will bring into use a vacant brownfield site, broaden the tenure mix and provide family accommodation, in accordance with the Council's objectives for this area.

West Midlands

Mowbray Manor
J S Bloor Ltd
Coventry
Kickstart will unlock a phase of 52 dwellings comprising 40 HBD and 12 open market units. A further 60 units will be delivered through later phases of development. The site was formerly used as a college campus by Tile Hill College whereby the college subsequently relocated to a new purpose built facility within the Swanswell Regeneration area in September 2007. The units to be secured under Kickstart Round 2 form the second of three phases in a residential development delivering a total of 118 units.

Castle Gate
Morris Homes
Tamworth
£611,250
Kickstart will unlock 54 homes of which 22 will be available through HomeBuy Direct and 32 through the open market. The scheme is the redevelopment of the former Doutlon Works in Tamworth and the phase unlocked by Kickstart is the second of two phases which will provide a total of 162 homes. The scheme comprises a mix, agreed in consultation with the Local Authority, of one bedroom flats and two and three bedroom houses, with a mixture of private and affordable housing.

East Midlands

City Point
Morris Homes
Derby
£768,000
Kickstart will unlock 69 units on this site which will provide 33 HomeBuy Direct units and 36 private sale units. The wider City Point scheme is a large residential project which will bring forward 600 new homes situated on a former City College site near to Pride Park Football Ground. The vision is to create a mixed tenure community and there is a good mix of social rent, shared ownership, shared equity and outright sale properties. The development has stalled due the market downturn's impact on lending to prospective homeowners in Derby City and supporting the delivery of this phase of the project will accelerate the completion of the wider site.

Halls Lane
Persimmon Homes
Giltbrook, Broxtowe, Nottinghamshire
£1,259,250
This scheme consists of 62 homes, 12 available for social rent and 50 through HomeBuy Direct. The Borough Council have confirmed that they support this scheme due to the high level of owner occupation and a marginal proportion of affordable housing, the location of Halls Lane is close to established (owner occupied) housing estates and the offer of the affordable housing product HomeBuy Direct to residents of the locality and Borough would bring greater stability whilst contributing to the creation of a more balanced and sustainable community. The securing of Kickstart 2 funding for 50 Homebuy Direct homes would help to address the demand for affordable housing products and also the need for good quality homes of 2, 3 and 4 beds within the Giltbrook area whilst also contributing to regional housing targets.

East of England

Wixams
Miller Homes Ltd
Bedford
£719,250
There are 113 units in total on the wider Miller project, of which 50 form the Kickstart area. This Kickstart phase consists of 15 private units, 15 Low Cost Home Ownership units and 20 HBD units. Parcel A at Wixams forms part of a wider consortium development to the south of Bedford of some 4500 units. The site has not progressed due to a lack of full price market sale interest and restrictions on purchasers ability to secure mortgage finance. The introduction of HBD helps to alleviate these issues by helping to provide a wider market appeal.

The Edge
JS Bloor
Dunstable
£627,450
Kickstart funding will unlock 56 units through provision of funding for 26 HomeBuy Direct units with the remainder of the units being available for private sale. The site is a priority redevelopment of a prominent former brownfield site and will provide a range of housing options in a high demand area.

London

Acton Bus Depot
Crest Nicholson
London Borough of Ealing
£3,362,928
Kickstart funding will unlock 85 units of which 20 are for social rent, 10 Homebuy Direct and 6 NewBuild Homebuy. The scheme mix of tenures will help address the borough's housing needs. Most of the homes are 1 and 2 bed flats, which will help meet the need from a growing number of smaller households in the borough. It will also meet the aspirations of applicants seeking low cost home ownership opportunities. It is in a high value, desirable area of the borough in which there are few alternative opportunities to develop affordable housing. It is well served by transport and other facilities. There are three 3-bed flats for rent which will help address the needs of larger families.

Hillingdon House Farm
Persimmon Homes
Hanbury Park, North Way, Uxbridge, Hillingdon
£705,000
Kickstart funding will unlock a phase of 55 units which is one of three phases on this site. The scheme has a strong fit with local context and is within close proximity to great amenities for sports and leisure, transport and within walking distant to schools. The bid satisfies regional priorities by delivering affordable housing where there is limited competing supply and unmet demand. The LB of Hillingdon is fully supportive of the scheme and is keen to promote an opportunity to help low income households to get on the property ladder.

South East

Farnborough Central
Redrow Homes Ltd
Farnborough
£1,305,188
Kickstart will provide HBD funding for 41 units that will improve affordability for first time buyers and keyworkers and will kickstart the provision of a total of 125 units within this phase. This phase will provide a mix of 1 to 3 bed accommodation located in a sustainable location close to an employment hub and public transport facilities, forming part of a new town centre development in Farnborough. This scheme helps to address affordability of units in a high cost area and will help to regenerate this area of Rushmoor as part of a high quality mixed use development.

RAF Wendover
Barratts
Wendover, Aylesbury Vale
£1,365,150
This site is a brownfield site that fits with local and regional priorities and makes the best use of surplus public sector land. The kickstart investment is targetted at one phase of the wider scheme, and will bring forward the delivery of 40 HBD units, 43 affordable units and 24 open market units to meet the high level of demand within the Milton Keynes and South Midlands Growth Area.

Hailsham
Redrow Homes Ltd
Hailsham
£895,500
Kickstart funding will unlock a phase of 54 units as part of a wider scheme of 128 homes that is a key strategic scheme. Hailsham has the highest level of affordable housing need in the District and this scheme will relieve local housing pressure. The entire Scheme comprises a mix of private, social and LCHO (HBD) units, a mix of flats and houses ranging from 1 to 5 bedrooms with an emphasis on larger homes.

South West

Crediton Road
Persimmon SW
Okehampton, West Devon
£1,772,250
This project will deliver 72 homes of which 61 are three- or four-bed. The HBD homes delivered with Kickstart funding will complement an existing NAHP-funded project for 31 homes for rent. It also may assist in bringing forward delivery of a larger proposal which has the potential to deliver a project which totals over 400 mixed tenure homes. The first phase will enable access to the school and support infrastructure to be provided.

Block Q Dockside
Crest Nicholson
Portishead
£351,450
This project will deliver 15 HBD direct units within a scheme of 94 units, forming part of a much larger dockside development in Portishead, which will make a significant contribution to regional growth targets and local housing need. The site is a former industrial brownfield site which has been remediated and is being developed as part of a major regeneration project, making a significant contribution to housing need and will offer a wide range of including 1 to 5 bed market dwellings, apartments and affordable units.

Torre Marine
Barratts
Torquay
£220,538
This scheme has received previous NAHP and FTBI investment support from the HCA and the 10 additional HBD units will provide much needed affordable housing in Torbay. Kickstart funding will unlock a phase of 65 units as part of a wider mixed tenure scheme of 258 homes.

Contacts

NDS Enquiries
Phone: For enquiries please contact the above department
ndsenquiries@coi.gsi.gov.uk