Housing Growth Partnership (HGP) has been granted an additional £300 million in funding by the Government with the aim of building 10,000 new homes by 2025!
What is the funding programme all about?
Created in 2016, the Housing Growth Partnership says its aim is to bridge the homebuilder funding gap, aid more homebuilding, and allow housebuilders to grow their businesses. The HGP announced at the end of September, that a further £300 million funding programme, provided by Homes England and Lloyds Banking Group, would fill the gap with homebuilders and support the Government to resolve the housing crisis.
The funding is vital to tackle the housing crisis in the UK
The new fund will support a wider range of housing tenures to meet the UK’s diverse and growing housing needs. The scheme has a target of 10,000 new homes by 2025. The fund will encourage SME and regional developers to build more homes across the UK and in turn support their business growth and the community.
Developers who build between 5 and 500 residential homes of flats will qualify for the new funding and the fund will allow larger development projects than it has done previously.
The fund is also hoped to increase support for housing projects such as Regeneration, Build to Rent, and Retirement Living. There will of course be the focus upon greater sustainability using modern methods of construction.
With the housing situation being in turmoil, where will this new HGP funding leave the housing market, and what will the new market look like? Will we begin to see the homebuilder funding gap being reduced? Will the funding be successful in achieving the aim of building 10,000 new homes by 2025?
If you are a property developer and you qualify for the new funding, contact our property team to find out more.
This is not legal advice; it is intended to provide information of general interest about current legal issues.