Developers with stalled sites of just 15 homes will have the chance to bid for at least £100m of investment to get work restarted under the Get Britain Building programme.
The programme, which supports developers facing difficulties accessing development finance and by sharing risk, is set to unlock up to 16,000 homes by March 2015.
Development is underway on sites in Ashford, Kent, and in Bath, while funding has been allocated to 40 schemes so far, set to deliver more than 3,200 new homes once contracts are agreed. It is expected that all allocations to successful schemes from the original shortlist will be made over the summer.
Chief executive of the Homes and Communities Agency, Pat Ritchie, said: “It has been a tremendous effort from the industry and the HCA to get this programme up and running, and with more than £110m allocated I look forward to seeing these developments progressing to build much needed housing.”
The second round of bidding is now open and a prospectus, expressions of interest template and supporting guidance are available.
The funding for a further round of bids is available due to some schemes withdrawing from the programme, others failing to pass due diligence, or where final allocations were less than the original bid.
The total available will be at least £100m, and will be confirmed once the due diligence and allocations to the remaining first round schemes has been completed.
The programme remains a recoverable investment, with the main changes: •a reduction of the minimum site size from 25 to 15 homes. This will help smaller firms bid for the investment opportunity. •a simplified investment offer of commercial loan or equity risk sharing.
•round two schemes must start on site by 31 March 2013, with all homes complete by 31 March 2015.
Pat Ritchie continued: “I’m pleased that we are able to extend the reach of the Get Britain Building programme, giving many more developers who have struggled to secure finance the opportunity to apply for the investment they need to get their stalled projects back on track.
“We will continue to be thorough in our due diligence, and will only support those schemes backed by the community, which boost the local economy and provide a secure and value for money investment for the taxpayer.”
Expressions of interest must be submitted by noon on 25 July 2012.