As part of its ambitious housing development plan, the UK government proposes £49m for the first phase
The UK government has proceeded with its plan to tackle the housing crisis the UK is facing currently as part of its commitment to build 300,000 homes a year by the mid-2020s. The government has earmarked £5bn under its Housing Infrastructure Fund for the proposed development of new houses. The Housing Infrastructure Fund is part of the government’s comprehensive programme to fix the housing market. The Housing Infrastructure Fund is a government capital grant programme under which new homes will be built in areas with the greatest housing demand. Funding is awarded to local authorities on a highly competitive basis. The final funding will be announced from autumn 2018.
In the first phase of development, it will invest £49m into North East housing scheme to develop up to 13,000 new homes in local housing projects.
Housing secretary, Sajid Javid, and Chancellor of the Exchequer, Philip Hammond, have announced that eight council-led projects across the North East will receive funding to support local work, making housing developments viable to get more needed homes built.
Sajid Javid said that his priority is to build homes the country desperately needs. He said that this first wave of investment in projects across the North East will help get up to 13,000 homes off the ground, making a huge difference to communities across the region, adding that this is just one of the ways the government is taking action to get Britain building homes again.
This latest investment will fund key local infrastructure projects ahead of building houses. Along with the government’s Industrial strategy, it aims to provide high quality infrastructure to support economic growth. The government’s Industrial Strategy is a long term plan to boost the productivity and earning power of people throughout the UK.
Philip Hammond added that the day marks the first step of the multi-billion pound investment the government announced at the Budget to help build the homes the country needs. This fund finances vital infrastructure such as roads, schools and bridges, which will kick-start housing development in some of Britain’s highest-demand areas. This support will help meet the ambitious plan of building 300,000 new homes each year and ensure there is enough housing in areas which need it most.
Some of the projects for which funding will be provided under the government capital grant programme include a new link road and utility infrastructure at the St George’s Hospital site in Northumberland, which will deliver 875 potential new homes at a cost of £4.5m; delivering a potential 1,200 new homes through upgrading roads as part of the West Park Garden Village in Darlington at a cost of £2.8m; and unlocking 1,579 new homes by improving road junctions and providing new power supply in the Newton Aycliffe Housing Growth Area in County Durham at a cost of £6.9m.