Communities and Local Government

• Corporate
• Newsroom
• Latest news
• John Healey gives go-ahead to get new homes back on track

www.communities.gov.uk

John Healey gives go-ahead to get new homes back on track

Published	14 September 2009

Housing Minister John Healey has today announced that ten stalled development projects have been given the go-ahead to receive the first wave of Government cash to get building work on 740 homes back on track. Construction workers on the first project will be back on site from next month.

Mr Healey has also pledged to make apprenticeship schemes and local recruitment a condition for securing Government support through the Prime Minister's £1.5bn Housing Pledge, announced in Building Britain's Future in June.

The 10 housing schemes will receive over £10m to complete 740 new homes, part of the Prime Minister's Housing Pledge announced in June that will help build the homes the country needs, help the country through recession and help people into jobs.

The projects have cleared a tough detailed assessment by the Homes and Communities Agency through the £1bn Kickstart programme, and meet the Government's tough terms for investment.

Projects benefiting from the funding released today include:

• The Steeple Chase project in Redcar, which will provide 141 homes, including 12 apartments to house women fleeing violence. Work will begin in October
• Roebuck in Hellingley, which will help deliver 64 homes, including 28 Homebuy Direct, 18 open market,14 social rented and four low cost homes. Work will start on site in November
• The Fieldways scheme in Paulton, which will help deliver a total 110 homes, including 10 Homebuy Direct homes. Work will start on site in November
• The Fox Walk development in Sandwell, which will deliver 61 homes including 10 Homebuy Direct, seven social rent and eight affordable homes. Work will start in October.

Nine of the ten projects given the go-ahead today are run by developers with established apprenticeship schemes. Mr Healey said this is just the start, and developers applying for future Government funding will have to set out plans to offer apprenticeships and jobs to local people.

The Prime Minister's Housing Pledge has the potential to provide work for 45,000 people in the construction and related industries. Today's pledge to put apprenticeships and local job opportunities at the heart of this drive could mean the creation of 1,300 apprenticeship places over the next two years.

Mr Healey has set out his plan in a letter to developers and housing chiefs, making clear that if they apply for a share of the Housing Pledge funds they will be required to offer apprenticeships and local jobs.

To demonstrate his intent, the Minister today launched the second round of the Kickstart programme and announced the new requirement of all firms bidding for funds to offer apprenticeships and jobs to local people.

John Healey said:

"We are using the power of Government investment to build the homes that people need, help get people into jobs and help Britain through the recession. But I also want to create the career opportunities that our young people deserve.

"Today, I am giving the go-ahead to the first wave of Kickstart funding to ten projects. Collectively, these developments will build 740 new homes, and nine of them are run by developers with established apprenticeship schemes. Construction workers will be back on the first of these sites next month.

"Today, I am telling housebuilders who want to apply for a share of our multi-billion Government investment that they'll have to offer apprenticeships and local jobs. This way, we make more of every taxpayer's pound invested in housing, building more homes and creating the chance of training and work for more young people."

Homes and Communities Agency chief executive Sir Bob Kerslake said:

"Kickstart isn't just about unlocking more homes; it will also be the catalyst that delivers a much-wider set of benefits to local communities including job opportunities, apprenticeships and accommodation for vulnerable people.

"This first set of successful bidders is just the start, we'll now be working through the remaining bids with the aim of finalising all the allocations for this first round in the next two months to ensure that schemes start-on-site by March 2010."

This Kickstart support comes on tough terms - almost half the money from this must be repaid within five years, over one third will go to housing associations and others to help them manage the affordable housing, and less than one fifth consists of direct grant to support developers. Only developers who have accepted a realistic current market price for their land were eligible for Government investment. All of these projects have gone through a rigorous assessment before getting the green light.

This funding will only be used to make projects that have been mothballed in the current economic climate viable, and is only being provided where developers cannot get support from other sources. It will boost development funding available, reduce levels of risk associated with projects and help support demand from homebuyers through measures such as Homebuy Direct.

Notes to editors

The projects getting the green light today are:

1. The Pippens, Rugeley, Staffordshire, West Midlands
The Pippens site, close to Lea Hall colliery, will enhance the last decade of regeneration work in the area. £507,188 Kickstart funding will create a total of 52 homes including 21 HomeBuy Direct houses and 14 Low Cost Homes, starting work in November this year. The developer, Persimmon Homes Ltd, provides an apprenticeship scheme.

2. Mitchells Brook, Sandwell, West Midlands
The £120,563 Mitchells Brook project will regenerate the former Cape Hill Brewery. Persimmon Homes Ltd are creating a 52-home development that will deliver five HomeBuy Direct properties and three social rent homes, starting November 2009. Persimmon will also run an apprentice scheme as part of this project.

3. Foxwalk, Sandwell, West Midlands
The £139,098 Fox Walk development in Cradley Heath will provide 10 HomeBuy Direct, seven social rent and eight affordable homes as part of a 61 home development starting in October. Barratt Developments Plc will create apprenticeships on this site.

4. Attwood Green, Birmingham, West Midlands
Attwood Green is a major redevelopment in walking distance of the Birmingham City Centre. The £412,395 Kickstart funding will help create 50 homes, including 14 under HomeBuy Direct starting on site in November. Persimmon Homes has stated their intention to create apprenticeships on this site.

5. Westpoint, Portishead, South West
The Westpoint scheme will help to regenerate the Portishead dockside. £246,000 Kickstart funding will help provide 96 homes in the area, including 17 HomeBuy Direct homes, starting in November this year. Barratt Developments Plc will create apprenticeships on this site.

6. Steeple Chase, Redcar, North East
The Steeple Chase site in Redcar will help to address the slow housing market in the area. £4,566,030 Kickstart funding will provide 141 homes - 90 social rented and 12 HomeBuy Direct homes, as well as 39 open market homes. 12 apartments in the Coast and Country Housing Association Ltd development will be constructed as shelters for women fleeing violence for local charity EVA.

Coast and Country Housing Association are looking to create employment opportunities, including apprenticeships, through a local labour scheme.

7. Repton Park, Ashford, South East
A former army barracks, the £631,200 Repton Park project will help deliver 56 homes. This will include 31 HomeBuy Direct houses, ten open market sale homes, four social rented homes and eleven low cost homes, starting on site at the beginning of 2010. Persimmon Homes Ltd will also create apprenticeships on this site.

8. Roebuck Park, Hellingley, South East
Renovating the former Hellingley Hospital site, the completed Roebuck Park will provide a total of 400 homes within historic buildings and surrounded by a local country park, sports facilities and community centre. £752,850 Kickstart funding will help deliver 64 homes, including 28 HomeBuy Direct, 18 open market, 14 social rented and four low cost homes, starting on site in November this year. Persimmon Homes Ltd will create apprenticeships on this site.

9. Fieldways, Paulton, South West
The £242,250 Fieldways scheme in Paulton will bring forward a total of 110 homes, including 10 HomeBuy Direct homes, starting on site in November this year. Barratt Developments Plc will create apprenticeships on this site.

10. Gilead Street, Liverpool
Gilead Street is statistically one of the poorest areas of Liverpool, and considered one of the most deprived districts in the United Kingdom. £2,654,500 Kickstart funding will help provide 58 homes, including four social houses and 25 low cost homes, and help restart the development of vacant buildings in the area. RSL Riverside run an apprenticeship programme on this site.

Twitter

Keep up to date with the Department by following us on Twitter (external link).

Media enquiries

Visit our newsroom contacts page for media enquiry contact details.