HCA shortlists 265 schemes for £550m boost
The Homes and Communities Agency has shortlisted 265 schemes for a share of £550 million available through the second round of Kickstart.
The £1.06 billion scheme supports developments where work has stalled because of the economic slowdown. The shortlisted schemes have the potential to deliver 22,482 homes, and create 12,000 jobs.
The HCA said it has seen a shift in applications towards developments intended for Homebuy Direct, which helps first-time buyers onto the market. It said this reflects the improved position of many house builders, but is also an acknowledgement that more needs to be done to help first-time buyers.
Of the 22,482 homes, 10,839 are intended for market sale or rent, 5,707 are for Homebuy Direct, 4,322 are for social rent, and 1,614 are for low-cost homeownership. Bids cover all regions of England (see table, below).
Projects bidding for round two of Kickstart needed to be housing-led schemes with a least 50 homes, although fewer were permitted in rural areas. They also needed to have detailed planning consent in place, or be able to achieve this by March 2010, and create jobs and apprenticeships for the local area.
HCA chief executive Sir Bob Kerslake said: ‘Kickstart continues to be a crucial component in maintaining momentum in the house building industry.
‘In this round we have seen a marked increase in requests for HBD funding and this indicates how the appetite for HBD has accelerated as an attractive option for first-time buyers, which in turn is fuelling demand for homes. This shift in the bidding profile has enabled us to increase the target for HBD by a further 3,000 units next year, as set out in the pre-Budget report last week.’
Housing minister John Healey added: ‘We are using the power of government investment to build homes and support jobs at a time when the house building industry needs it most.’
The HCA will now carry out a detailed assessment of each of the round two bids, before deciding which are to go ahead. In round one, £359.9 million was allocated to 136 schemes to build 10,281 homes.
Regional breakdown of round 2 bidders
| Region | Number of Projects | Amount of Investment (£’000s) | Number of homes (gross) |
| East of England | 42 | £72,982 | 3487 |
| East Midlands | 36 | £61,261 | 1988 |
| London | 21 | £93,794 | 3433 |
| North East | 14 | £27,642 | 839 |
| North West | 51 | £72,117 | 3232 |
| South East | 28 | £83,269 | 3637 |
| South West | 21 | £62,606 | 2427 |
| West Midlands | 29 | £45,743 | 1951 |
| Yorkshire and the Humber | 23 | £30,160 | 1488 |
| Total | 265 | £549,574.00 | 22482 |
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