Councils on course to deliver thousands of affordable homes thanks to extra HCA funding
11 January 2010
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The appetite for council house building is stronger than ever, according to the Homes and Communities Agency (HCA), which today confirmed that 73 local councils in England will have access to over £230m of funding under Round 2 of its Local Authority New Build Programme.
The funding, made up of £122.6m grant from the HCA and matched by a similar figure of borrowing by the local authorities, will see over 1,900 new council homes built, many of which will be larger family-sized homes. Priority was given to schemes offering high energy efficiency standards and over 90% funded today will meet Level 4, or higher, of the Code for Sustainable Homes. As a result at least 7,900 people on council waiting lists will have a quality new home at a rent they can afford, with lower energy bills and a reduced impact on the environment.
Sir Bob Kerslake, chief executive of the HCA, said: “The level of interest has been tremendous and demonstrates the appetite of local authorities to lead directly on affordable housing supply. Deciding between the bids has been challenging, but the outcome is a really strong set of schemes that meet a high standard. I am particularly pleased with the number intending to deliver to a higher energy efficient standard.”
Elaine Elkington, Strategic Director of Housing and Constituencies at Birmingham City Council, which received funding for eight schemes, said: “We are absolutely delighted to have been successful under Round 2 of the Local Authority new build programme. Only last Friday we celebrated the first birthday of the Birmingham Municipal Housing Trust by starting on site with the 129 homes funded by Round 1. Funding for more new Council homes is a terrific birthday present for the people of Birmingham.”
The 1,900 new homes will be built on 164 different sites, many of which are disused such as former garages, helping to remove the blight of dereliction from communities.
Every region in England has received funding, with around 40% of the new homes to be built in the North, 36% in the South and 24% in the Midlands. Nearly 200 of the homes will be for rural communities, where housing affordability has been particularly hard hit.
The HCA received bids for funding from 86 local authorities under Round 2 of the Programme, which was oversubscribed by approximately £240m. Each bid underwent a rigorous assessment process focusing on value for money, fit with local priorities, quality and speed of delivery.
The funding announced today means that a total of £514m of grant and prudential borrowing will be invested in just over 4,100 new council homes under Rounds 1 and 2 of the Local Authority New Build Programme.
Ends
For more media information please contact Robert Davies in the HCA press office on 020 7881 1624 / robert.davies@hca.gsx.gov.uk.
Notes to editors:
A full list of the successful local authorities and the schemes to be funded is available to download from the HCA website.
The Local Authority New Build Programme was first announced in April, with £100 million allocated in the Budget. A further £360 million was allocated through the Housing Pledge in June.
The successful Local Authorities under Round 1 of the Programme were announced in September last year, with 217 schemes receiving a share of £141m grant funding for 2,171 new homes.
The Homes and Communities Agency (HCA) is the single, national housing and regeneration delivery agency for England. Our role is to create opportunity for people to live in high quality, sustainable places. We provide funding for affordable housing, bring land back into productive use and improve quality of life by raising standards for the physical and social environment.