Government to kickstart mothballed housing projects

The Government has announced a £925 million initiative that could allow work to recommence on 270 stalled development projects across England.

According to Housing Minister, John Healey, the scheme could get building work on 22,400 homes back on track and create 20,000 jobs.

Every region already has projects shortlisted under the Kickstart programme, which forms part of Prime Minister Gordon Brown’s “Housing Pledge”.

Over 8,600 of the homes created by the scheme will be for affordable rent or sale, with two-thirds built to a standard above building regulations, in an attempt to cut CO2 emissions and reduce energy bills for the families that live in them.

Over a third of the funding will go to housing associations and slightly under one-fifth to support developers in the form of direct grants, but only where firms cannot obtain finance from other sources.

In addition, the Government expects almost half the money to be repaid within five years.

Mr Healey explains: “This is not a handout to developers. There are tough terms to this deal including repayment of loans within five years. And only builders who accept a realistic current market price for their land are eligible.”

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