16 October 2012
Housing Minister Mark Prisk has announced that the first applications to the new £30million Custom Build Investment have been earmarked for approval.
Speaking at the Self Build Summit for local authority leaders in London, organised by the government in association with the National Self Build Association and Local Government Association, Mr Prisk said that the first projects would benefit from over £1.1m to kickstart up to 20 self build plots.
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The applications in North East Derbyshire (worth £450,000 for 9 developer self build plots at Morton) and Peterborough (with a loan value of £725,000 for 11 plots) will be the first to receive the funding which provides short-term finance to help unlock projects where groups of self build homes are built at the same time.
Mr Prisk was joined at the event by industry-appointed Self Build Champion, Kevin McCloud, together with a team from Almere in The Netherlands who are behind Europe’s largest low cost, self build development , which was visited by the former Housing Minister earlier this year.
Surge in interest in self build
Mr Prisk said that there had been a great surge of interest in recent years for self build, and it was now important that local authorities learnt from abroad and local projects to identify opportunities for self build development in their plans, and to give people in their area the opportunity to build their own home.
He said: “Across the country, more people than ever want control over the design and build of their home. But these types of projects have often been held back because of limited land availability, reluctance by lenders to provide finance and red tape. So I’m delighted that the first self-build projects in Derbyshire and Peterborough have been earmarked for Government cash.
Local authorities can learn from Almere’s example
“This money will be repaid as plots are sold, and I hope it will demonstrate to lenders, investors and the development industry that these types of projects are worth backing. But it’s not just about money, self builders and developers need the support of local authorities to get these projects off the ground. So I’m pleased we have the team from Almere to share their expertise, and I urge local authorities to learn from their example and help more self builders achieve their dreams.”
Kevin McCloud said: “I welcome the first approvals for cash from the Government’s £30m investment fund which will help drive activity in the sector and give more people the opportunity to build their own home. But it is not just about cash, we need to see more support from local authorities if we’re serious about making self build a mainstream housing option. And I hope we can draw inspiration from the projects like Almere, and many others across Europe, about what is achievable with strong local leadership and vision”.
The £30 million fund will be available over the next three years (2012 to 2015). Funding is available to cover the cost of building, land acquisition or other costs associated with a proposed development of five or more custom build homes with planning permission. The funding is available to eligible applicants bringing forward projects in England with the exception of London.
Further information can be found here.
