Proposals to create thousands of new homes and jobs in Devon have been backed by an agreement for the Government to invest £32m in the project to get the first phase of work underway.
The investment from the Homes and Communities Agency (HCA) is intended to unlock the development of the long-awaited new community of Sherford, which is anticipated to bring 5,500 new homes, 5,000 jobs, 83,000 sq m of employment space and a host of community facilities to the South Hams district, on the edge of Plymouth.
The development is expected to generate around £1bn in development expenditure to the area and provide an economic boost worth around £2bn.
Subject to the agreement of legal terms, the investment would be used by a development consortium led by Red Tree to start work on the development and begin a series of important road and utilities improvements to accommodate the early phases of house building (see notes to editors for more information).
Partners today welcomed the investment from the HCA’s £225m Local Infrastructure Fund, which is set up to create up to 50,000 new homes on major sites across England.
HCA Executive Director for the South and South West Colin Molton said: “The new community of Sherford is an incredibly important project, because it will go a long way towards meeting the significant need for new homes in Devon and Plymouth and provide a major boost for the economy. It is a complex development, which has taken years to bring to this stage. It is fantastic news that investment has been approved which will support the development of the sustainable new community of Sherford. I look forward to seeing work start on the project soon.”
Red Tree Partner James Koe added: “A great deal of determination, commitment and, of course, funding is required to deliver a project on this scale and with this ambition. Red Tree has always held firm to the principles of good design and responsible development embedded in the vision for Sherford.
"With the added delivery capability of some of the most able house builders in the country in Taylor Wimpey, Bovis Homes and Linden Homes and the explicit support of the government in providing this funding we can all now start the process of delivering on these ambitions. The funding is the vital catalyst to the commencement of the development and this is exciting news for Sherford and for the local economy.”
Cllr John Tucker, Leader of South Hams District Council, said: “This is welcome news as we have worked very hard with the local community and the developers for some time now to plan for a high quality new development. The current economic downturn however has created a great number of challenges in bringing the development forward. We now hope that the Government loan to the developers will kick start the scheme and lead to much needed homes in the South Hams and jobs for local people.”
Plymouth City Council leader Tudor Evans said: “This is tremendous news. This heralds the start of a project that will bring much-needed new homes and new jobs to Plymouth. Sherford has been on the horizon for a long time and goes back to the 1990s.
"It’s one of the three areas identified in our growth agenda for development and I’m delighted that the Homes and Communities Agency are awarding funding for thousands of homes and a new community to help this city fulfil its potential.
"There is much to do, but it’s great news to finally get off the starting blocks. We’ve all been in training for a long time for this. For every home built, one and a half permanent jobs are created. This is not just good news for the construction industry, it’s good for the wider supply chains and the businesses and shops that will all begin to see new customers as this new community begins to take shape.”
Local communities have been involved in developing the scheme since 2005 and it has been supported through development guidance outlined in South Hams District Council Sherford Action Plan as well as Plymouth’s North Plymstock Area Action Plan.
This investment will be made as a loan which will be repaid with interest as homes are completed and sold. Sherford is the fifth large-scale site that the government has helped to accelerate since August last year. It follows a £20m investment in the second phase of Cranbrook, in nearby East Devon in December 2012.
It is estimated that the Sherford project will take around 15 years to complete.