Homes agency offers 50% of land buying costs to housing associations that promise to build more
The new Homes and Communities Agency has told some cash-strapped housing associations it will fund up to 50% of their land acquisitions if they can guarantee they will get homes built through the downturn.
The news comes after Robert Napier, the HCA chairman, said in October he was asking the government for permission to invest in development land while it was cheap. It also follows the release of a letter by Richard Hill, the HCA director of investment, to investment partners outlining how funding for new social housing would work.
The letter said the agency would have arrangements in place with key developing organisations by the end of March and that the HCA would consider helping associations to convert unsold homes into rented property if they agreed to build homes in future. The agency might also help associations to buy land or build on HCA-owned sites if they can do so fast and on a large scale.
However, a source at the agency said: 鈥淲e鈥檒l fund 50% of acquisition costs for sites 鈥� it鈥檚 something we鈥檝e not done before.鈥�
The source said the agency was looking for investment partners to bundle together large portfolios of schemes for potential funding by the agency. Partners were told they could expect more generous grants on stalled schemes if they identified possible new sites for homes.
Dale Meredith, Southern Ho