The Homes and Communities Agency (HCA) is in a strong position to deliver the new investment detailed by the Chancellor, according to Chief Executive Andy Rose.
The Budget saw the announcement of significant new investment in housing to support over 200,000 new homes. Chancellor George Osborne has outlined a number of initiatives including a £6bn, 4 year extension to the Help to Buy equity loan scheme and a £500m Builders Finance Fund.
HCA Chief Executive Andy Rose said: “Once again Government has put a strong emphasis on housing in the Budget. In our role as Government’s housing delivery agency, we welcome today’s announcement by the Chancellor of up to £7bn total investment to support delivery of thousands of new homes, which builds on the Spending Round announcement of £3.3bn for affordable housing.
“The likely role for the HCA builds on our expertise, the success of our existing programmes and proven track record of delivery, and on our effective regulation.
“The Budget reiterates Government’s commitment to the housing sector. Investment in housing meets the needs and aspirations of homeowners and provides choice for renters. It is also a key driver of local economic growth, creating jobs in construction and the wider supply chain, and helping employers to attract the staff they need, as well as stimulating buying activity in the local economy. We will work with DCLG and our partners on the details of the new programmes and to maximise their impact.”
The Budget has also set out the conclusions from the strategic review of land undertaken by the Government Property Unit (GPU), which confirms scope to generate £5bn of receipts from land and property.
Andy Rose added: “We also welcome the commitment to quantify housing and growth ambitions for public land by the next Autumn Statement. Disposal of land is core business for the HCA – we are already increasing the amount of public land for development, speeding up existing development and re-starting stalled schemes and we are on track to bring forward enough land by 2015 for more than 16,000 homes.”
Announcements in the Budget include:
Public Land– The Strategic Land and Property Review has identified scope to generate £5bn of receipts from land and property to support growth and drive efficiency, and Departments have already committed to release £3.5bn. The Government Property Unit will also increase its work with local areas on better use of public sector assets, linking with Growth Deals, the Strategic Land and Property Review and the One Public Estate pilots.
Help to Buy– The equity loan scheme will be extended to March 2020 with an extra £6bn to help a further 120,000 households purchase a home. No changes to eligibility are being made. There are no changes to the Help to Buy mortgage guarantee scheme which will end in December 2016.
Builders' Finance Fund– Government will provide a £500m recoverable Builders Finance Fund to provide loans to SME developers for sites of 15 to 250 units. Funding is available in 2015/16 and 2016/17 and will unlock 15,000 housing units stalled due to difficultly in accessing finance. The prospectus is due later this year.
Estate Regeneration- Government will establish a £150m loan fund to kick-start the regeneration of some of the worst housing estates, with expressions of interest invited from private sector developers. Some expressions of interest have already been made through the Greater London Authority. Funding is available from 2015/16 to 2018/19 with repayment expected over 15 to 20 years (max).
Custom Build- Government will consult on a new ‘Right to Build’ to give custom builders a right to buy a plot from councils. Government will be seeking a small number of councils to act as vanguards to test the model. A new £150m Serviced Plots loan fund (2014/15 to 2018/19) will help provide up to 10,000 serviced plots for custom build. Councils will need to work with contractors or builders to access the fund. The Government will also look to make the Help to Buy equity loan scheme available for custom build.
Garden Settlements - A new Garden Settlement will be built in Ebbsfleet, selected because of its high-speed rail link to London, housing pressures in the south east and local support. Government will consult on an urban development corporation for the area to unlock up to 15,000 new homes – with up to £200m capital being made available. The UDC’s proposed mandate will be to work with local councils, developers, and residents, to support and accelerate the development. Government will also, by Easter, publish a prospectus seeking expressions of interest for other locally-led garden cities.
