Transcript Slide 1

Get Britain Building – key points
for partners
Versha Koria, Area Manager
South & South West HCA
2nd March 2012
Part of the Housing Strategy
 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
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
HCA role and impact
 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
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
 www.homesandcommunities.co.uk/getbritain-building
 http://www.homesandcommunities.co.uk/sites
/default/files/our-work/gbb_faq_110112.pdf
homesandcommunities.co.uk