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The government has created a £2.3bn local infrastructure fund to boost housebuilding across certain parts of the UK.
Chancellor Philip Hammond said the money will be enough to pay for infrastructure necessary to deliver up to 100,000 homes, where the need is greatest.
It will be funded through the newly created £23bn National Productivity Investment Fund and allocated to local government on a competitive basis.
Mr Hammond made the announcement alongside a package of measures to increase housebuilding in the UK.
These included a £1.4bn affordable housing fund for 40,000 starts by 2020/21 and the relaxation to restrictions on government grant funding, to allow for a mix of tenures including affordable rent and low-cost ownership.
The Greater London Authority will also receive £3.15bn from the government, as part of an affordable housing settlement to deliver over 90,000 housing starts by 2020/21.
Mr Hammond said: “This commitment to housing delivery represents a step-change in our ambition to increase the supply of homes for sale and for rent, to deliver a housing market that works for everyone.”
The £2.3bn fund is in addition to the £3bn Home Builders Fund to deliver 200,000 homes and the £2bn Accelerated Construction Fund, revealed earlier this year.
The government today said it would invest £1.7bn by 2020/21 through the NPIF to help meet its accelerated home target.
The Home Builders Fund will target small-scale developers to help overcome issues around access to finance.
It is expected to help SME housebuilders create an extra 25,500 homes before 2020 with a long-term goal of building 225,000 homes.
- Housing and infrastructure fund A new Housing Infrastructure Fund of £2.3bn delivered by 2020/21, for up to 100,000 new homes. The government said it is also examining options to ensure that other government transport funding better supports housing growth.
- Affordable housing fund Government will invest a further £1.4bn to deliver 40,000 additional affordable homes.
- Relaxed restrictions The government will relax restrictions on grant funding to allow providers to deliver a mix of homes for affordable rent and low-cost ownership.
- Right to Buy The government will fund a large-scale regional pilot of the Right to Buy for housing association tenants. Over 3,000 tenants will be able to buy their own home with Right to Buy discounts under the pilot.
- £3bn Home Builders Fund It will also relax restrictions on government grant to allow a wider range of housing-types.
- £2bn Accelerated Construction Fund Funding to speed up the delivery of new homes on publicly owned brownfield land.
- £18m Capacity Fund Councils will be able to bid for a share of the funding to help tackle planning issues that prevent builders from getting on site. It is estimated the money will help accelerate the delivery of up to 800,000 homes as well as infrastructure projects across large sites in England.