Thousands of new homes to be built with £175 million government scheme
Government launches fund to transform derelict land into sites with brand new homes - including affordable homes - across the UK.
Thousands of new homes are set to be built on derelict land under a new £175 million government scheme.
The funding will be used to turn council-owned land, including redundant industrial sites, disused car parks and derelict buildings, into new communities, according to the Department for Levelling Up, Housing and Communities.
A total of 59 regeneration projects, from Exeter to Sunderland, have been approved to receive the first £35 million under the scheme.
The fund will lead to 2,200 new properties being built, including 800 affordable homes.
The remaining £140 million will be allocated over the next two years, leading to a further 17,600 new homes.
Minister for Housing Lucy Frazer said: “We are helping local communities transform unwanted, urban eyesores into thriving places that people are proud to call home.
“Regeneration is at the heart of our levelling up mission and this new brownfield first fund will help communities across the country unlock disused, council-owned sites to build more of the right homes in the right places.”
Why is this happening?
The scheme is part of the government’s drive to help more people get on to the housing ladder, while levelling up the country.
Funding for the scheme will come from the £180 million Brownfield Land Release Fund 2, which has been allocated to 41 councils to help kickstart regeneration in towns and cities.
It builds on the first Brownfield Land Release Fund, under which councils received £77 million to assist with the construction of 7,750 new homes.
Who does it affect?
The move is good news for people wanting to purchase a new-build home, as it will help to boost supply.
Developments will also take into account the types of property local communities need.
Meanwhile, turning derelict land and buildings into new properties will have a positive impact on the surrounding area, making neighbourhoods more desirable and helping to support local house prices.
What’s the background?
The government has pledged to deliver 300,000 new homes each year in a bid to tackle the UK’s housing shortage.
The National House Building Council (NHBC) recently announced that the number of new properties being built had soared to a 15-year high during the three months to the end of September, with a total of 44,729 homes started during the period.
The level of properties under construction increased in 10 of the UK’s 12 regions.
New-build homes offer a number of advantages to buyers. Not only are they more energy efficient and have lower maintenance costs, but they typically come with a 10-year warranty from the NHBC.
In addition, purchasing a new-build property is chain-free if you are a first-time buyer or do not have a home that you need to sell.
Key takeaways
- Thousands of new homes are set to be built on derelict land under a new £175 million government scheme
- The funding will turn council-owned land, including redundant industrial sites, disused car parks and derelict buildings, into new communities
- 59 regeneration projects for 2,200 new properties have already been approved under the scheme