Get Britain Building – key points for partners Versha Koria, Area Manager South & South West HCA 2 nd March 2012

 Housing is crucial for social mobility, health and well-being  It plays a key role in the Government’s plans for economic recovery and growth  The Housing Strategy puts in place a wide range of measures to increase affordability, promote market stability and improve quality  It sets out the steps the Government has already taken and introduces new proposals to tackle the challenges we face Part of the Housing Strategy

Stalled sites  Lack of development finance is constraining supply  There are 133,000 stalled units  Work has been done to identify the nature and profile of stalled sites  These differ in character to those that stalled following the 2008/09 recession

Get Britain Building  £420m investment fund announced as part of the Housing Strategy in November 2011  Aims to support building firms in need of development finance  Can unlock deliverable but stalled sites (of 25 units or more) with planning permission  Aiming to unlock up to 16,000 homes by December 2014

 Most significant announcement in the strategy for us  We have learned from Kickstart  These lessons will be taken into account, particularly improvements in value for money and recoverability  This programme continues our shift from grant to investment  Projects can include affordable housing, but must not exceed 50% of the total units bid for  All funding is recoverable HCA role and impact

Criteria for sites  An eligible site must: –Be in England –Have outline planning permission –Be currently stalled –Be capable of starting or restarting by December 2012 –Be capable of completing by December 2014 –Contain a minimum of 25 homes

Criteria for bidders  Bidders must be: –A private sector organisation (including housebuilders, developers and private Registered Providers) –In control of the land (freehold or long lease)

Available Funding  Finance is available as: –Loans at commercial rates –Equity A – Equity investments where the Government invests alongside the developer and shares proportionately in risks and returns –Equity B – In limited circumstances where viability is marginal, we may consider recovery in part (as in Equity A) and in part triggered when agreed thresholds (e.g. levels of receipts) are reached  The HCA will look to recover investment by March 2018

Timetable 12 noon, 30 January Deadline for Expressions of Interest Mid March Announcement of shortlisted projects May Due diligence process From May Detailed project approvals (subject to contract) From June Restart on site

Current Position  Projects of high importance to particular communities which can create wider local benefits were commissioned.  18 Projects were given clearance to proceed to due diligence through the commissioned route. Subject to contracting, these would deliver up to 1,300 new homes including on public sector owned sites.  170 expressions of interest received, many of these contain multiple schemes.  HCA are in the middle of assessing each bid for vfm, deliverability and fit with local priorities.  Shortlist to be produced by mid-March.

More information  britain-building britain-building  /default/files/our-work/gbb_faq_ pdf /default/files/our-work/gbb_faq_ pdf

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