Sunday, May 10, 2009

Bidding starts for £400m Housing Kickstart fund

Housebuilders and developers began bidding for a slice of a  ВЈ400m Government fund today, aimed at kickstarting stalled housing projects.

Firms can bid for a share of the fund so long as their stalled schemes meet strict Homes and Communities Agency (HCA) criteria. The ВЈ400m Kickstart Housing Delivery Programme, which was announced in the Budget, has a brief to unlock housing schemes that fell prey to the credit crisis. However only schemes that start on site within the financial year 2009/10 will be eligible. They must also be high quality housing projects that include a mix of tenures. The initiative is expected to deliver up to 9,000 new homes.

Funding will be open to private sector developers as well as public sector housing organisations. Under the deal the HCA will look to recovering its imvestment and a a share in any profits from rising house prices once the market imprioves.

The bidding deadline is June 8 2009 with successful bidders announced in July.