Funding stream for building firms in need of development finance.
Get Britain Building
This programme was trailed in the Government’s Housing Strategy – ‘Laying the Foundations’ - published in November 2011. It is a fund of £420m which will support building firms in need of development finance, including (but not limited to) small and medium sized builders.
It is intended the fund will help unlock progress on stalled sites which have planning permission and are otherwise ‘shovel ready’. It is open to all private organisations which control the relevant site and will carry out development.
Funding has been made available on the basis that it is recoverable. The programme will operate by making direct investments in specific projects through loans to address cashflow issues or taking an equity stake to build confidence through risk sharing.
Where the viability of a scheme is impacted by the scale of planning obligations, through the due diligence phase, the Homes and Communities Agency (who are running the fund) would expect to have a three way conversation with the developer and Local Authority to consider if there is a more pragmatic approach to balancing those contributions with scheme viability.
The fund is currently in a competition phase where stalled projects could (re)start no later than December 2012. This was launched on 22nd December 2011 and the timetable is as follows:
• Expressions of interest - 12 noon 31st January
• Assessment of EoIs - - February and early March 2012
• Announcement of results - Mid March 2012
• Issue *Due Diligence Packs - Mid-March 2012
• Due Diligence Packs returned - Mid-April 2012
• Due Diligence Process - May 2012• Detailed Project Approvals - From May 2012 onwards
• (Re) start on site - From June 2012
For Further information and the Expression of Interest Forms please visit http://www.homesandcommunities.co.uk/get-britain-building