Housing Delivery Funds
A new government partnership with Barclays will offer development finance to small- and medium-sized housing developers. The £1 billion Housing Delivery Fund is an attempt to diversify the range of housing providers. Applicant developers will need a track record of delivering projects on time and on to budget, but the new fund will look to promote innovative methods of housing delivery.
In his Professional Feature, edited by the RIBA Practice team, Neal Morris also notes that Government has already made it clear that it wants to prioritise offsite manufacturing in publicly funded projects from next year.
Administering & Providing Funds
Homes England, will put £125m into the funding pot. It will both administer the scheme and provide between £5m and £100m for new homes, including social housing, retirement living and apartments to rent.
Barclays is reported to be looking at raising its usual limits of 65% loan-to-cost and 55% loan-to-value to 80% and 70% respectively, significantly reducing the amount of non-bank finance that developers need to find.
Wimshurst Pelleriti designed and developed this £1m apartment building in Hampton Wick
on the site of two derelict shops. Photo © Jon Reid of arch.photos
Land Assembly Fund
The larger of the two, the £1.3 billion Land Assembly Fund, will be used to acquire land needing work and get it ready for the market, making it less risky for developers to invest in and start building. This will be a hands-on programme for Homes England, targeting large development sites.
The announcement offered a site in Burgess Hill in Sussex as an example, one which had lain undeveloped for years. Homes England bought the land and will deliver infrastructure, including roads, schools and doctors’ surgeries, to facilitate a plan for 3,000 new homes.
Small Sites Fund
Meanwhile the £630m Small Sites Fund will provide grant funding to speed up infrastructure provision for smaller sites and is aimed specifically at public land owners and local authorities. For public land owners that are struggling to develop their own sites, the Fund will provide grant funding to enhance the attractiveness of sites for developers by providing the necessary infrastructure for house building.
CPD “ How to Be a Developer”
Will Wimshurst will present a CPD session on ‘How to set up and run a property development business’ at ‘Guerrilla Tactics 2018: Expanding Practice: Navigating the architecture of planning, procurement and property’, which takes place at the RIBA on 13–14 November 2018.
Your ‘Off-Site’ Partner in Development
Better all-round Savings