Second wave of Kickstart funding announced
13 October 2009
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Another £51m has been released by the Homes and Communities Agency (HCA) in the second wave of schemes to be unlocked through round one of the Kickstart Programme. The announcement was made today by Housing Minister, John Healey, who revealed that a further 2000 new homes will be built on sites that had previously stalled due to the economic downturn.
This second wave of funding will allow work to continue at 27 housing schemes across the country is in addition to more than £10.2 million Kickstart money awarded by the HCA in September to unlock almost 750 affordable and market sale homes, across 10 schemes. This brings the total number of homes released through Kickstart to 2750 across 37 schemes with an investment of over £60m.
Sir Bob Kerslake, chief executive of the Homes and Communities Agency said: “This latest Kickstart money combined with funding through our standard affordable housing programme puts us in an ever stronger position for delivery of much needed new homes.
“As a result thousands more people will have a new quality home at a rent they can afford, or will be helped to take the first steps into home ownership.”
The successful schemes announced today include Kalamazoo in Birmingham, a former print works that is set to receive £1.7m funding to help build 50 more homes and The Grange in Bowburn, County Durham, which will receive over £3.3m to deliver 80 homes, of which 49 will be affordable, including 10 bungalows for the Durham Aged Mineworkers Association (DAMHA).
Also announced by the Housing Minister today was an update on the HCA’s National Affordable Housing Programme, revealing that in September, almost £400m was allocated to deliver around 6,000 affordable homes across the country. This includes £32m in the South West, over £13m in the North West and funding for more than two thousand new affordable homes in London.
The Public Land Initiative (PLI), established as part of the Prime Minister’s Housing Pledge, was also mentioned in a speech by the Housing Minister today. Set up in June to build 1,250 new homes, including around 500 affordable homes, on a small number of sites owned by the HCA, PLI will see the first housebuilders on site by April next year and the first 50 homes completed by 2010/2011.
Some 45 local authorities will be attending an event on 16 October being organised by the HCA, to see how they can get involved in the initiative and learn more about how their land could be developed by members of the HCA’s new Delivery Partner Panel. Once appointed to the panel in late November, members will have the opportunity to work on HCA projects including a range of regional schemes in addition to the Public Land Initiative, and Local Authorities will be able to use the panel for building new homes.
The Delivery Partner Panel framework will exist for three years and be split into three regional clusters - Northern, Central and Southern - each with 6 to 12 members. Panel members will cover the full range of development activity including the raising and/or deployment of development/construction finance, the design and construction of residential and other buildings (including infrastructure), and the sales/lettings and marketing of properties.
ENDS
For more information please contact Gemma Thompson, HCA Press Office on 020 7881 1054 or email gemma.thompson@hca.gsx.gov.uk
Notes to editors:
1. The Homes and Communities Agency (HCA) is the single, national housing and regeneration agency for England. Its vision is about creating opportunity for people to live in homes they can afford, in places they want to live and for local authorities and communities to deliver the ambition they have for their own areas. The HCA brings together English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.
2. Kickstart Programme. In April’s budget £400 million was allocated to the HCA to unlock stalled housing schemes and a further £660 million was allocated through the Prime Minister’s Building Britain’s Future in June 2009, creating a total package of £1.06 bn. Kickstart could deliver up to 22,400 homes that must be completed by 31 March 2012. Kickstart funding will only be used to make projects viable that have been mothballed in the current economic climate, and is only being provided where developers cannot get support from other sources. It will boost development funding available, reduce levels of risk associated with projects and help support demand from first time buyers through measures such as HomeBuy Direct.
3. The Public Land Initiative delivery targets are 1,250 homes in the next three years, of which 500 are to be affordable. The government’s Housing Pledge included £53.75m for this Initiative, which will be used by the HCA to build the tools and processes needed to establish this as a new alternative mechanism for creating new homes. Read more about the Public Land Initiative.
4. The Delivery Partner Panel may be used to secure the expertise of other members in comprehensive development management across the following areas, which may be drawn down independently to works elements - project and programme management, brokering finance and funding, land and planning, design and technical, commercial, construction management, and sales and marketing.
5. The funding being allocated to regions through the National Affordable Housing Programme is:
| Region | Total £m funding through NAHP | Number of homes |
|---|---|---|
| Yorkshire and the Humber | 10,746,687 | 296 |
| West Midlands | 23,929,575 | 402 |
| South West | 32,131,813 | 587 |
| South East | 67,630,992 | 1,459 |
| North West | 13,600,252 | 320 |
| North East | 1,424,389 | 65 |
| London | 214,303,401 | 2,252 |
| East Midlands | 5,939,139 | 135 |
| East of England | 22,362,822 | 604 |
| Grand Total | 392,069,070 | 6,120 |
6. The successful projects to receive the second wave of Kickstart funding include:
West Midlands
Kalamazoo, Birmingham
50 Homes, £1,768,000 Kickstart Funding
Miller Homes
The Kalamazoo site was formerly a printing works and was partially redeveloped 5 years ago by Fairclough Homes. Kickstart funding has been granted to Miller Homes which will result in a further 50 dwellings including 16 flats and 34 houses (a mixture of studios, two, three and four bedroom houses) which will be available through a combination of open market sale, Homebuy Direct and Social Rent. Site preparation works are to commence in October 2009 with all Kickstart units being completed by March 2011
HCA West Midlands Team and Job Centre Plus are working with Developers on the KHD scheme to identify, prepare and up-skill suitable unemployed candidates for employment opportunities that will arise through the programme. This is aimed at delivering an integrated approach to skills and employment through the delivery of Job Centre Plus employment initiatives linked to HCA funded regeneration.
Chenet Park, Great Wyrley
31 Homes, £198,000 Kickstart Funding
Persimmon Homes Ltd
The scheme lies in Great Wyrley, a rural settlement close to the M6 Toll corridor. This corridor has seen significant investment and in recent years has been a hub for new employment floor space. The scheme therefore compliments the targeted development of new employment space and provides the necessary mix of units providing for the local labour workforce.
Kickstart support has been secured to deliver 31 dwellings by March 2011 for this rural scheme. Twelve of these will be HomeBuy Direct dwellings with the remaining 19 open market sales. Start on site will be in October 2009 and Practical Completion of HBD units by December 2010 and with all sales concluded by March 2011. Again, this scheme will seek to include local labour and/or apprentices.
Deers Leap, Cape Hill, Birmingham
52 Homes, £426,660 Kickstart Funding
Persimmon Homes Ltd
Cape Hill is a major redevelopment opportunity for NW Birmingham. The site is only 4km (2.5miles) from the Birmingham City Centre and is well served by local services. Over 200 dwellings will be constructed on the Cape Hill site. The site is within the Urban Living Birmingham & Sandwell Pathfinder area. It forms part of the proposed Birmingham & Sandwell Western Growth Corridor Strategy and is an important priority for meeting regional housing needs. The development is providing predominantly family housing to meet local needs.
Kickstart funding will be used to provide 52 dwellings (8 flats, 29 three bed, 7 four bed & 8 five bed houses) at the Deers Leap development. The development will be built to Code for Sustainable Homes Level 3.
Liberty Park, Coventry
111 Homes, £973,200 Kickstart Funding
Wates Living Space
The Liberty Park development is a 4 phase project to regenerate the old Hillside and Meadway areas of Stoke Heath, Coventry. Working with the original landowner (Whitefriars Housing Group) Wates Construction decanted the original residents and demolished 202 old unpopular houses. Planning approval was granted to develop 271 new homes, 204 for sale and 67 for Whitefriars Housing Group for affordable rent.
Liberty Park was designed with the 1st time buyer in mind, as a result of the economic downturn this sector has been hardest hit by the changes in mortgage lending with most of Wates interested purchasers wanting to buy properties but are unable to raise the required deposit. HBD will help resolve this issue as has already been proven on Wates Bannerbrook Farm site and the City site in Coventry which received HBD funding in the first round of allocation last year.
Kickstart funding into the scheme will bring forward 50 HBD units for delivery by December 2010 and sold by March 2011. In addition the developer will deliver 40 open market units and 21 for social rent by March 2011. In total the Kickstart phase of the development will deliver 111 units, all by March 2011.
Fusion, Wolverhampton
104 Homes, £348,750 Kickstart Funding
Barratt Developments
Funding under Kickstart will enable 104 homes to be delivered by March 2011 including 84 market sale and 20 Homebuy Direct units.
Windsor Road, Redditch
162 Homes, £3,212,500 Kickstart Funding
Persimmon/Westbury Partnerships
Windsor Road is a major brownfield regeneration project in Redditch comprising the redevelopment of a former gas works site. The site lies ½ mile to the north of Redditch Town Centre and has planning consent for 255 residential units. The remediation of the site has been completed and the primary site infrastructure and early phases of the scheme have been completed.
Funding under Kickstart will unlock a phase of 162 homes, comprising 34 affordable units and 128 HomeBuy Direct units - 162 units in total. For the HomeBuy Direct part there will be 66 two bed apartments, 11 two bed houses, 29 three bed houses and 22 four bed houses. For the affordable element there will be 17 two bed houses and 17 three bed houses of which 13 will be for social rent and 21 intermediate rent. The development will be built to Code for Sustainable Homes Level 3.
Park Central, Birmingham
51 Homes, £3,246,200 Kickstart Funding
Crest Nicholson
Lakeside, Cannock Chase, West Midlands
52 Homes, £1,063,406 Kickstart funding
Bellway Plc
North West
Tranmere Site E, Birkenhead, Merseyside
56 Homes, £1,078,123 Kickstart Funding
Lovell Partnerships Ltd
Tranmere Site E comprises one phase of a wider residential development programme within Tranmere HMRI, Birkenhead. It had stalled due to the economic downturn and market failure. It is a prominent, cleared site and lies on a main arterial route leading into Birkenhead town centre. Its redevelopment will, because of its location, be high profile and it will significantly improve the image and perception of the area. It will provide much needed new family accommodation for local people.
Kickstart funding will result in the delivery of 56 houses (a mixture of two, three and four bedroom semi detached and terraced houses). They will all be for sale and 20 of them will be sold with the benefit of HBD support. Site preparation works commence in November 2009 with all the dwellings being completed by March 2011. The development will be built to Code for Sustainable Homes Level 3.
New Broughton Main Site and Site U, Salford, North West
Main site: 169 Homes, £7,362,501 Kickstart Funding
Site U: 50 Homes, £658,000 Kickstart Funding
Countryside Properties Plc
Main site
Funding under Kickstart will enable 169 homes to be delivered by March 2011 including 49 market sale, 87 units for social rent and 33 Homebuy Direct units.
Site U
Funding under Kickstart will enable 50 homes to be delivered by March 2011.
South West
Liskerrett Vale, Liskeard, Cornwall
50 Homes, £279,315 Kickstart Funding
Galliford Try Homes Ltd
Liskerrett Vale is situated in the East Cornwall market town of Liskeard, a rural area which forms part of the Plymouth travel to work area. The development as whole comprises 154 dwellings including a range of 1 and 2 bed apartments and 2, 3 and 4 bedroom houses. Galliford Try subsidiary Midas Homes started construction on site in January 2008; but the current phase had stalled due to market conditions.
Funding under Kickstart will enable 50 homes to be delivered by March 2011 including 40 market sale and 10 Homebuy Direct units. The development will be built to Code for Sustainable Homes Level 3.
The Meadows, Bristol, South West
53 Homes, £788,625 Kickstart Funding
Barratt Homes Bristol
The Meadows is part of a large residential development in East Bristol, which is located in the West of England Growth Point. The development of the site will assist in meeting local growth targets and deliver much needed accommodation for local people.
Kickstart funding will be used to assist the completion of the stalled development and result in the delivery of 53 homes (a mix of one/two bedroom flats, and three/four bedroom houses). They will all be for sale, and 41 of them will benefit from Home Buy Direct Support. The site will be re-opened immediately to enable all the units to be completed by April 2010.
Orchard Leaze, South West
55 Homes, £503,550 Kickstart Funding
Barratt Homes Bristol
55 homes to be delivered by March 2011; 35 for market sale & 20 Homebuy direct.
Hazel Grove, Bristol
151 Homes, £897,000 Kickstart Funding
Barratt Homes Bristol
Funding under Kickstart will unlock the site to enable 151 homes to be delivered by March 2011 including 63 market sale, 9 LCHO, 37 social rent and 42 Homebuy Direct units.
Millbay D1, Plymouth, South West
64 Homes, £1,679,278 Kickstart funding
Galliford Try Homes Ltd
Coopers Edge, Gloucester, South West
53 Homes, £569,250 Kickstart funding
Persimmon Homes
Kingsway, Gloucester, South West
53 Homes, £282,000 Kickstart Funding
Persimmon Homes
North East
The Grange, Bowburn, County Durham
80 Homes, £3,309,674 Kickstart Funding
Dunelm Property Services Limited
The site subject to the Kickstart bid forms part of a larger 12 hectare site situated on the fringe of the village of Bowburn, approximately three miles south west of Durham City. The overall scheme delivers a sustainable mixed use development on a former brownfield site. Whilst situated just outside the South and East Durham Growth point it will contribute to sub-regional housing numbers in a difficult market and is fully supported by the local authority.
Kickstart funding will unlock 80 homes of which 49 will be affordable, including 10 bungalows for Durham Aged Mineworkers Association (DAMHA) and 39 units for Riverside North East. the bungalows are arranged around a courtyard but the Riverside units will be integrated with the private for sale. The market housing provides a majority of smaller 2/3 bed homes, for which assistance has been sought on 10, the remainder will be offered for sale. The development will be built to Code for Sustainable Homes Level 3.
Yorkshire and the Humber
Easel Sites 5 & 7, Leeds, West Yorkshire
Easel 5: 87 Homes, £1,924,074 Kickstart Funding
Easel 7: 81 Homes, £1,321,451 Kickstart Funding
Bellway Plc
East South East Leeds (EASEL) is allocated as one of 8 top sub-regional investment priorities in the Regional Spatial Strategy, and it is Leeds City Council's (LCC's) top renewal priority. EASEL 5 and 7 are two demolish and replace schemes to be delivered by Bellway under the first phase of a framework agreement with LCC aimed at improving the environment and providing wider house type and tenure mix which is intended to reposition the market in this deprived estate.
To address issues of over-provision of single tenure Council stock and lack of house type choice in this area of Leeds, the scheme proposes a mix of house types including 2 bed (low rise) flats and 2, 3 and 4 bedroom terraced / semi-detached houses. It is proposed to introduce a tenure mix that includes private sale, Homebuy and Rent to Homebuy products to create a mixed community and housing choice and opportunity.
EASEL 7, (also known as Parkway Vale, Seacroft) is new build renewal scheme consisting of 202 units on 4.29ha of cleared former Council housing land. The Kickstart investment directly facilitates the provision of 81 homes - 41 of these will be HBD units, 30 for LCHO and 10 will be open market sales.
EASEL 5, (also known as Oak Tree Drive, Gipton) is new build renewal scheme consisting of 198 units on 3.45ha of cleared former Council housing land. The Kickstart investment directly facilitates the provision of 87 homes - 47 of these will be HBD units, 30 for LCHO and 10 will be open market sales. This site will be built to Code for Sustainable Homes Level 3.
Yarn Street, Leeds
61 Homes, £3,954,000 Kickstart Funding
Miller Homes Ltd
Brewery Lane, Kirklees
77 Homes, £2,471,000 Kickstart Funding
Miller Homes Ltd
East Midlands
Manning Road / Willoughby Road, South Kesteven, East Midlands
69 homes, £2,828,000 Kickstart funding
Larkfleet Homes
Oakham, Rutland, East Midlands
30 Homes, £1,298,500 Kickstart funding
Larkfleet Homes
East of England
Hampton VT18, Peterborough, East of England
115 Homes, £1,245,900 Kickstart funding
Persimmon Homes
South East
Portswood Road Scenario 1, Southampton, South East
101 Homes, £5,567,000 Kickstart funding
Orchard Homes and Developments Ltd
Total schemes: 25 (or 27 if counting 2 New Broughton sites and 2 Easel sites separately)
Total affordable homes: 2,068
Total funding: £49,253,957