Local authority bids mark new stage in affordable house building says HCA
9 September 2009
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Local authorities today revealed their appetite for building new social rented homes through the first results of a £460 million bidding programme managed by the government’s Homes and Communities Agency (HCA). The national housing and regeneration agency has given the go ahead to 47 local authorities in England to receive grant funding totalling £127 million to build up to a total of just over 2,000 new homes. The announcement was made by Housing Minister, John Healey, today (9 September 2009).
Sir Bob Kerslake, chief executive of the HCA said that the superb response to the Local Authority New Build programme (LANB) “marked a new era in affordable house building”. Speaking after the Minister’s announcement Sir Bob said: “The reaction to this funding programme by local authorities has been outstanding and proves that councils are geared up, confident and enthusiastic about developing their own homes. LANB is another important stimulus to the housing market, empowering councils and allowing them to call the shots when it comes to local housing needs.”
This first round announcement will see 205 schemes receive funding with the largest number of homes due to be delivered in Yorkshire & Humberside (453). Bidding, which closed at the end of July, was open to local authorities to deliver new social housing on land they already own, prioritising schemes that offered higher energy efficiency standards.
The total package of £460 million - that will be distributed in two rounds - was made available through government in the April budget (£100 million) and was later increased by a further £360 million over three years as part of the Housing Pledge (June). LANB allows councils to undertake additional ‘prudential’ borrowing to bring about development, the first round funding pot of £251 million is split in a ratio of 51:49 with £127 million as grant and £124 million reflecting the prudential borrowing to be raised.
Successful schemes were selected on the basis of deliverability, value for money and strategic fit. Some 20 schemes are subject to on-going discussions and may have an opportunity to resubmit in the second round of funding - anticipated to be in the order of more than £200 million (including ‘prudential’ borrowing) - to be announced later this autumn.
Ends
For further information please contact: Anne Kerin, HCA press office on 020 7881 1653 or email anne.kerin@hca.gsx.gov.uk. A full breakdown of the bidders can be found on the HCA website on the LA New build page
Notes to editors:
The Homes and Communities Agency is the single, national housing and regeneration 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.
| Region | Number of local authorities | Number of schemes | Number of homes | Grant (£s) |
|---|---|---|---|---|
| East Midlands | 10 | 29 | 314 | 16,474,312 |
| North West | 7 | 26 | 253 | 16,966,531 |
| London | 6 | 45 | 332 | 28,577,784 |
| Yorkshire and the Humber | 6 | 45 | 453 | 26,824,162 |
| South West | 6 | 23 | 156 | 10,058,206 |
| North East | 5 | 16 | 226 | 11,750,258 |
| South East | 4 | 13 | 123 | 8,273,521 |
| West Midlands | 2 | 5 | 157 | 8,078,404 |
| Eastern | 1 | 3 | 7 | 295,057 |
| Total | 47 | 205 | 2,021 | 127,298,235 |