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- John Healey: £450m to get workers back on stalled housing sites
John Healey: £450m to get workers back on stalled housing sites
| Published | 29 October 2009 |
|---|
Housing Minister John Healey today finalised a £450m funding package to kickstart work on over 150 stalled housing developments, getting work back on track and builders back on site.
Mr Healey said this cash injection to every region of the country is a rapid response to the recession, to help house-building at a time when the industry needs it most.
Workers will start returning to these mothballed sites within weeks - building over 11,100 homes, and creating or safeguarding around 9,500 jobs. Over 5,000 of these houses will be affordable homes for low cost sale or rent.
The Government has applied tough value for money tests for projects to receive Kickstart funding. The Minister today gave the green light to 115 schemes to receive a share of up to £388m. This takes total Government investment through the Kickstart programme to over £450m to deliver over 11,000 homes. It means that since June Mr Healey has approved the release of almost £1.5bn in Government help for house-building.
The flagship Kickstart programme offers rapid action in recession. House-building projects can take years to complete, but under Kickstart once cash has been confirmed builders can return to work within weeks.
Mr Healey is ready to run a second wave of Kickstart, with over £500m available. Developers continue to see the real help this can offer in tough times, which is why second wave bids have been received that could deliver up to 55,000 homes and around 2,000 apprenticeships.
To ensure the Government gets the most for every taxpayer's pound, this funding comes with tough terms. Over two thirds of the funding is expected to be repaid, with less than a fifth consisting of direct grant to support developers and the rest used to fund affordable homes as part of the Kickstart programme. Only developers who have accepted a realistic current market price for their land have been eligible for this investment.
Today, John Healey finalised round one of the Kickstart programme, which started in July and short-listed 270 projects in line for funding.
Of the 270 schemes short-listed for funding in this round of the Kickstart programme, 152 projects have been approved.
Developers for 81 schemes withdrew their bids for Kickstart support at this time - with some citing improved market conditions and better access to private finance as one of their main reasons. Forty-six developers that have withdrawn from the first round of Kickstart are submitting bids for the second round.
But 35 schemes have not passed the tough tests and will not receive Kickstart funding - either because they did not offer value for money for taxpayers, or because the design of the development was not of a high enough quality. Some could not meet the tight timescale - a key requirement to ensure communities benefited from this cash injection as quickly as possible, when they need the help most.
John Healey said:
"This Kickstart cash is a rapid response to the recession, using the power of Government investment to support the country through the downturn. With this investment, we are creating jobs and helping build the homes people need.
"Kickstart funding comes with tough terms, and I expect much of this money to be repaid within five years. Some developers have failed our tough value for money test, but I'm also encouraged that others have withdrawn saying they no longer need help because market conditions are improving.
"But with over £500m Kickstart cash available in the second round, help is on hand for those who need it. And I expect all developers submitting bids to offer apprenticeship and local job opportunities for young people in our communities as part of their plans to get their stalled housing projects back on track."
Chief executive of the HCA, Sir Bob Kerslake said:
"I am delighted that the HCA has been able to play such a major role in unlocking key housing schemes across the country.
"The due diligence process has been a thorough and challenging one for all involved but I am pleased that so many good schemes have been confirmed. We now look forward to completing the contracts and getting starts on site."
Notes to editors
1. The Kickstart programme is being delivered through the Government's Homes and Communities Agency.
2. Examples of projects benefiting from Kickstart funding include:
North East
Kvaener, Stockton-on-Tees
Bellway Homes Plc: £2,063,580
The £2m scheme will deliver 50 homes for social rent and market sale on a former industrial site on the edge of Stockton-on-Tees town centre.
West Lane, Phase 2, Middlesbrough
C M Yuill: £2,286,500
Kickstart funding will unlock a total of 69 homes for market sale, HomeBuy Direct, social rent and low cost homeownership to be built on the former site of unfit terraced properties.
North West
Ice Plant Ancoats, Manchester
Northern Group Developments: £1,761,000
The Ice Plant project sits within Ancoats Urban Village and Kickstart funding will unlock 82 market rent apartments to address the emerging demand for high quality rented accommodation in the growing regional centre.
Tower Wharf, Chester
Morris Homes: £2,457,500
Tower Wharf is one mile north east of Chester City Centre on the side of the Shropshire Union Canal. Kickstart investment will unlock 86 homes for market sale, HomeBuy Direct and social rent, and Morris Homes have indicated their intention to provide an apprentice scheme onsite.
Yorkshire and the Humber
Innovations, Brough
Barratt Developments: £962,000
Kickstart funding will unlock the delivery of 60 much needed homes on this stalled site on the north bank of the river Humber, a popular commuting area.
Verve, Hull
Galliford Try: £3,624,00
This distinctive scheme of 2, 3 and 4 bedroom semi-detached and detached homes will provide greater choice and quality of housing for local residents in an area consisting of a majority of converted Victorian town houses. The Kickstart investment will unlock 82 HomeBuy Direct and social rented homes, addressing the need for more social rented housing in the area.
West Midlands
George Road, Birmingham
Miller Homes Ltd: £1,842,900
Kickstart investment in this brownfield site in Erdington surrounded on 3 sides by Brookvale Park & Lake will deliver 50 homes for mix of market sale, HomeBuy Direct and social rent, and will unlock further development in the area.
Waterfront South, Walsall
Accord Housing Ltd / Jessup Brothers Ltd: £8,468,750
Located in Walsall town centre, Kickstart investment in the Waterfront South development will unlock the first phase in development of a total 158 homes and will include construction training for local people. This first phase will deliver a mix of market sale, HomeBuy Direct, and social rent homes, with 119 low cost home ownership homes for local healthcare workers, working with the PCT.
East Midlands
Nene Road, Lincoln
Miller Homes: £1,745,290
Nene Road 1 is a site to the North of Lincoln and is well connected into the City Centre. Kickstart Funding will unlock 55 homes, and will open the door to Nene Road 2, which encompasses the remainder of the development and delivers another 79 homes.
St Johns, Enderby, Blaby
Miller Homes: £1,088,403
Kickstart funding will help deliver 54 homes in Blaby, including HomeBuy Direct, social rent and low cost homeownership homes, which will provide much needed affordable housing for the area. The developer will also have apprentices on site.
East of England
Kings Reach Phase 3, Kings Lynn
Taylor Wimpey: £533,000
Kickstart funding will unlock a total of 51 homes in Kings Reach which will be split between market sale, affordable rent and Low Cost Home Ownership.
Port Lane, Colchester
Bellway plc: £729,000
This investment will deliver a total of 109 homes, for market sale, HomeBuy Direct and social rent, providing much needed affordable and larger housing in this area. The developer has stated that it will provide apprenticeships on this site. The investment will unlock 32 market sale, 30 HomeBuy Direct and 47 social rented homes.
London
Limington Fields Phase 1a, London
Countryside Properties: £4,790,000
The £4.7m project will help in the regeneration of the area, which is currently a mixture of light industrial use and open land. The Kickstart funding will directly deliver 70 homes and unlock a further 31.
Stone grove, Barnet, London
Barratt Development Limited: £2,566,495
Stonegrove is a stalled section of a major estate renewal programme and will unlock 98 homes for market sale social rent and low cost home ownership. Barratt has also stated its commitment to providing apprenticeships onsite.
South East
Cannon Street, Deal
Statelane Ltd and Mildvalley Ltd Joint Venture: £2,000,000
Kickstart funding will deliver 50 homes for market sale along with much needed community services including a doctor's surgery and a community centre.
St Mary's Island, Chatham, Kent
Countryside Maritime Ltd and Moat Housing Society: £6,932,000
Kickstart investment for St Mary's Island will unlock 67 eco-friendly homes for market sale as well as 15 homes for social rent and 21 for low cost home ownership.
South West
Essence, Bristol
Galliford Try: £808,763
Kickstart investment will unlock 64 homes for market sale and HomeBuy Direct at this stalled redevelopment of a former garage and car show room on Cheltenham Road, a key gateway into Bristol.
Ker Street Phases 1 & 2, Plymouth
Midas Homes & Westco JV: Combined total of £2,050,000
Phases 1 and 2 of Ker Street in Plymouth are to receive over £2 million Kickstart funding to deliver a total of 123 units for a combination of market sale, affordable rent and Low Cost Home Ownership.
3. Regional breakdown of Kickstart funding, and overall investment in housing since June:
| Kickstart funding confirmed 29th October | Kickstart projects approved subject to conditions | Total Kickstart funding confirmed today | Total Kickstart funding to date | Overall total Housing investment since June | ||
|---|---|---|---|---|---|---|
| East Midlands | Money £m | 21.60 | 24.51 | 46.11 | 50.24 | 94.60 |
| Homes provided | 605 | 476 | 1081 | 1180 | 2109 | |
| East of England | Money £m | 1.26 | 19.08 | 20.34 | 21.58 | 72.62 |
| Homes provided | 160 | 606 | 766 | 881 | 2236 | |
| London | Money £m | 18.02 | 46.22 | 64.24 | 64.24 | 558.59 |
| Homes provided | 228 | 835 | 1063 | 1063 | 6152 | |
| North East | Money £m | 4.35 | 39.02 | 43.37 | 51.24 | 67.49 |
| Homes provided | 119 | 568 | 687 | 908 | 1296 | |
| North West | Money £m | 27.03 | 23.39 | 50.42 | 62.18 | 109.16 |
| Homes provided | 914 | 520 | 1434 | 1767 | 2741 | |
| South East | Money £m | 8.93 | 34.33 | 43.27 | 50.22 | 195.49 |
| Homes provided | 153 | 811 | 964 | 1185 | 4032 | |
| South West | Money £m | 18.41 | 1.10 | 19.51 | 25.00 | 127.98 |
| Homes provided | 547 | 90 | 637 | 1322 | 3054 | |
| West Midlands | Money £m | 37.77 | 17.55 | 55.32 | 67.74 | 152.64 |
| Homes provided | 720 | 416 | 1136 | 1964 | 3651 | |
| Yorkshire and the Humber | Money £m | 10.17 | 36.52 | 46.70 | 56.37 | 138.43 |
| Homes provided | 364 | 822 | 1186 | 1492 | 3212 | |
| Total | Money £M | 147.55 | 241.73 | 389.28 | 448.80 | 1517.00 |
| Homes | 3810 | 5144 | 8954.00 | 11762 | 28483 |
4. Projects approved today:
| Region | Developer | Project name | Local Authority | No of Homes | Funding |
|---|---|---|---|---|---|
| North East | Cecil M Yuill Ltd | West Lane Phase 2 | Middlesbrough | 69 | £2,286,500 |
| North East | Bellway Plc | Kvaerner | Stockton-on-Tees | 50 | £2,063,580 |
| North West | Briery Homes Ltd | Netherby Gardens | Carlisle | 42 | £1,417,800 |
| North West | Morris Homes | Tower Wharf | Chester | 86 | £2,457,500 |
| North West | Bellway Plc | Cressington Grange | Liverpool | 60 | £380,664 |
| North West | Bellway Plc | Williamson Place | Liverpool | 85 | £1,727,628 |
| North West | Artisan Ship Canal Developments Ltd | Advent phase 5 | Manchester | 108 | £4,933,000 |
| North West | Northerngroup Developments Ltd | Ice Plant | Manchester | 82 | £1,761,000 |
| North West | Countryside Properties (Northern) Ltd | New East Manchester | Manchester | 62 | £1,291,000 |
| North West | Countryside Properties (Northern) Ltd | Unity Mill | Rochdale | 50 | £541,350 |
| North West | Countryside Properties (Northern) Ltd | Victory Works | Rochdale | 53 | £3,411,000 |
| North West | Lovell Partnerships Ltd | Windermere Park | Rochdale | 50 | £1,555,000 |
| North West | Barratt Developments Plc | Chapelford, phase 10 | Warrington | 50 | £466,350 |
| North West | Miller Homes Ltd | Urban Space 50 | Warrington | 78 | £1,890,000 |
| North West | Morris Homes Ltd | Edgewater Park IS | Warrington | 108 | £5,201,000 |
| Yorkshire and Humber | Galliford Try Homes Ltd | Verve | East Riding | 82 | £3,624,000 |
| Yorkshire and Humber | Barratt Developments PLC | Innovations | East Riding | 60 | £962,000 |
| Yorkshire and Humber | Barratt Developments PLC | Horizons | Leeds | 50 | £2,021,000 |
| Yorkshire and Humber | Galliford Try Homes Ltd | Freshney Green | North East Lincolnshire | 122 | £1,535,000 |
| Yorkshire and Humber | Barratt Developments PLC | The Oaks | Wakefield | 50 | £2,030,000 |
| West Midlands | Morris Homes Ltd | The Quarter | Birmingham | 61 | £3,002,500 |
| West Midlands | Miller Homes Limited | George Road | Birmingham | 50 | £1,842,900 |
| West Midlands | Kier Ventures | Lower Milehouse Lane | Newcastle-under-Lyme | 80 | £7,505,276 |
| West Midlands | Lovell Partnerships Ltd | Camp Hill | Nuneaton and Bedworth | 50 | £1,113,014 |
| West Midlands | Barratt Developments Plc | Leabrook | Sandwell | 51 | £1,957,066 |
| West Midlands | Persimmon Homes | Spring Gardens | Shrewsbury and Atcham | 50 | £1,792,500 |
| West Midlands | Bellway Plc | North Solihull ph 2 | Solihull | 90 | £4,981,781 |
| West Midlands | Ironstone Developer Group | Ironstone 2 | The Wrekin | 80 | £4,286,178 |
| West Midlands | Accord Housing Association Ltd | Waterfront South | Walsall | 158 | £8,486,750 |
| West Midlands | Keapmoat Homes Ltd | Showell Park | Wolverhampton | 50 | £2,801,489 |
| East Midlands | Bellway Plc | Papplewick Lane Hucknall | Ashfield | 60 | £3,692,905 |
| East Midlands | Miller Homes Limited | St Johns, Enderby | Blaby | 54 | £1,088,403 |
| East Midlands | Bovis Homes Limited | Little Stanion Farm | Corby | 50 | £1,938,000 |
| East Midlands | Bela Partnership Ltd/ Corby Council | Kingswood | Corby | 116 | £4,842,614 |
| East Midlands | Strata Homes Ltd | Euphoria | Derby | 66 | £1,579,300 |
| East Midlands | Radleigh Group Ltd | Varsity Grange | Derby | 52 | £1,255,450 |
| East Midlands | Barratt Developments Plc | Freemens Meadow | Leicester | 51 | £1,730,000 |
| East Midlands | Miller Homes Ltd | Nene Road 1 | Lincoln | 55 | £1,745,290 |
| East Midlands | Barratt Developments PLC | Wilford Place | Rushcliffe | 50 | £1,996,942 |
| East Midlands | Barratt Developments PLC | Saxon Village | South Kesteven | 51 | £1,729,000 |
| East of England | Bellway PLC | Port Lane | Colchester | 109 | £729,000 |
| East of England | Taylor Wimpey UK | Kings Reach | Kings Lynn and West Norfolk | 51 | £533,000 |
| South East | Mildvalley Limited | Cannon Street, Deal | Dover | 50 | £2,000,000 |
| South East | Countryside Properties ( UK) Ltd | St Mary's Island | The Medway Towns | 103 | £6,932,000 |
| London | Countryside Properties ( UK) Ltd | Lymington Fields | Barking and Dagenham | 70 | £4,796,071 |
| London | Barratt Developments PLC | Stonegrove | Barnet | 98 | £10,021,555 |
| London | Mount Anvil ( Atlip Road) Ltd | Atlip Road | Brent | 60 | £3,200,000 |
| South West | Galliford Try Homes Ltd | Essence | Bristol | 64 | £808,763 |
| South West | Barratt Developments Plc | The Oaks | Forest of Dean | 120 | £7,487,000 |
| South West | Galliford Try Homes Ltd | Ph 1 Ker St, Devonport | Plymouth | 55 | £601,000 |
| South West | Galliford Try Homes Ltd | Ph2 Ker St, Devonport | Plymouth | 68 | £1,450,000 |
| South West | Bovis Homes Ltd | Charlton Hayes, Filton | South Gloucestershire | 98 | £3,861,000 |
| South West | Barratt Developments Plc | Wichelstowe | Swindon | 30 | £1,460,000 |
| South West | Bovis Homes Ltd | Tewkesbury | Tewkesbury | 102 | £2,500,000 |
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