I posted a note yesterday about the new Home Building Fund. Just to add to that, of the £3bn of funding announced, £1.15bn is “new” money, being an extra £880m committed for long-term loans (presumably for infrastructure funding) and £325m for short-terms loans (for development finance).
Communities Secretary, Sajid Javid also announced this week a further £2bn of funding for delivery of up to 15,000 new homes on surplus public sector land, both central and local government owned, on an “Accelerated Construction” model. It is reported that where such land can be identified as capable of being built out by 2020, the Government will commit to deliver the outline planning permission and undertake the costs of some remediation works to reduce development risks.
The Government is also reported to be seeking partnering arrangements with new entrants to the housing market, SMEs, custom builders and off-site manufacturers in the belief that they will be able to build out sites at a faster rate than the established, larger housebuilders, with a view to a “build now- pay later” model for deferred payment for land values.
It is anticipated that these proposals will be coupled with a greater focus on bringing forward brownfield sites, with an announcement of a new presumption in favour of housing on urban brownfield land. It’s being mooted that this will extend permitted development rights (for office-to-residential conversions) to allow for the demolition of office blocks for residential redevelopment.
We will now need to wait until the autumn statement for more detail, and an expected contemporaneous publication of the promised housing white paper.