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Helping Hand for Small Developers

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The government have recently announced that they will be selling public land with planning permission in place, starting with five sites in north-west London, Dover, Cambridgeshire, Chichester and Gosport. The government will be directly commissioning the development and it is intended that the development of these sites will be given to small and medium-sized developers. The first wave would see up to 13,000 homes built on the four sites outside London- up to 40% will be affordable starter homes. The Homes and Community’s Agency sell the land by traditional tender competitions or through selecting a developer for the site through its Delivery Partner Panel.

This support for smaller development schemes comes in addition to the establishment of the £525 million Builders Finance Fund. The new investment will be made available to unlock “shovel-ready” sites between 15 to 250 homes, which have their plans in place and the support of local people, but need a bit of help to get developments moving. All developers can apply to this scheme but the focus on smaller schemes will benefit smaller firms who build on these sites.

The Housing Growth Partnership was established in 2015 with a fund of £100million- £50 million granted by the government to match Lloyds Banking Group investment. The partnership is looking to invest in

- small and medium sized house builders who have evidence of a solid track record in delivering residential development schemes

- house builders who on average have 10-100 single unit completions annually over the past 3 years, and have a proven track record in land buying, design, construction, marketing and sales of new homes

It will support residential development projects with a gross development value of between £0.75 million and £12 million and will offer investments in the range of £0.5 million - £5 million for each project.

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