Infrastructure funding announced to support new homes

Housebuilders can apply for a share of at least £624m loan financing to improve transport, build schools and health services, and unlock land for new housing where it is most needed.

The Department for Levelling Up, Housing and Communities (DLUHC) announced the funding to improve infrastructure needed to kick-start new housing projects, with a particular focus on brownfield land.

The loan funding is expected to facilitate up to 116,000 new homes and create thousands of new jobs.

Housing minister Rt Hon Christopher Pincher MP said: ‘We are building the right homes in the right places so more young people and families can get on the housing ladder. Improving transport links, building schools and health facilities are key to unlocking new homes and creating vibrant places where communities can thrive.

‘This money will build on our commitment to bring derelict and abandoned sites back to life, regenerating towns and cities as we level up across the country.’

Chief executive of Homes England, Peter Denton, added: ‘This new infrastructure funding will be a powerful catalyst for creating new homes, places and communities.

‘It gives us the resources we need to back more developments like Houlton in Rugby, where a £35 million funding injection has helped to create new primary and secondary schools, a link road to Rugby town centre, and wider infrastructure needed to build a community of up to 6,200 homes.’

The funding is part of the £2.2 billion loan financing made available at Spending Review 2020 to support infrastructure and drive housing supply.

Loans will be administered by Homes England through the Home Building Fund – an existing housing supply programme that makes loan finance available to developers.

In related news, boost in employment across ‘levelling up’ areas will lead to a significant increase in demand for housing, with analysis from the Build Back Britain Commission projecting an annual shortfall of up to 67,000 homes across cities like Birmingham, Manchester, Bradford and Liverpool.

Photo by Troy Mortier