Crunch-buster loans to get homes built

A HOUSING development in Oldham put on hold as a result of the recession could be given Government cash to get back on track.

Housing Minister John Healey said a 49-home development proposed by three60 Property Investors Limited for Lumb Mill in Delph was one of 270 stalled projects that have been shortlisted for a share of £925 million.

The cash is being targeted at developers and housing associations who can get developments back under way by the end of the year but cannot get funding from elsewhere.

Mr Healey said: “We’ve pledged to use the power of Government investment to help Britain through the recession. This billion pound Kickstart programme will get stalled building work back on track, create jobs and help build the quality homes we need.”

But he stressed he was not giving developers handouts and almost half of the money will be in the form of loans and repaid within five years.

Mr Healey said: “There are tough terms to this deal including repayment of loans within five years.

“And only builders who accept a realistic current market price for their homes are eligible.

“I want to see builders back on these sites within weeks. So I will be calling on successful developers to pull out all the stops so construction can restart as quickly as possible.”

If the Oldham project is to secure some or all of the £1.9 million it has requested, it will have to meet strict criteria, including being able to start construction this year, Mr Healey said.

The funding includes £419 million of repayable loan or equity financing, £130 million of additional funding for low cost home ownership, £209 million for additional social rented housing and a £166 million non-repayable gap funding grant.

Last month, the Prime Minister told MPs investment in housing would be trebled to £2.1bn, funding 110,000 new affordable homes to rent or buy over the next two years and creating 45,000 jobs in construction.