Out-Law News 2 min. read

English local authorities invited to bid for share of £18m to speed up large-scale house building


The UK government has allocated £18 million in 'capacity funding', which local authorities in England will be able to bid for in order to speed up delivery of the largest housing developments.

The money is intended to be used for tackling the planning issues that prevent construction work from starting, such as capacity shortages, lack of resources and expertise. The money will "accelerate delivery" of up to 800,000 homes, and applications for planned projects on large brownfield sites due for completion by 2021 will be prioritised under the scheme, according to government guidance.

The government has also announced the creation of six further 'Housing Zones' on brownfield sites across the north of England and the Midlands, taking the total to 26 across the country and 31 in London.

The announcements are the latest by the government that are aimed at boosting the housing market, following last month's revamp of the £3 billion Home Building Fund. The government is also due to publish a 'white paper' on housing before the end of the year.

"We want to turbo-charge house building on large sites to get the homes built in the places people want to live, so that this country works for everyone, not just the privileged few," said housing minister Gavin Barwell. "These sites offer enormous potential to transform brownfield land into new homes, and our £18m funding will help get them built much sooner."

Announced as part of the 2015 Budget in March, housing zones are areas of brownfield land designated for the delivery of new homes by local authorities working in partnership with private developers. The newest housing zones are the Sheffield Housing Zone, South Yorkshire; North East Lincolnshire Urban Housing Zone, with sites in Grimsby and Cleethorpes; Hoyland-Wombwell Strategic Housing Zone in Barnsley, South Yorkshire; Sandwell Housing Zone, West Midlands; Pennine-Lancashire Housing Zone, with sites in Blackburn and Burnley; and Wirral Waters Housing Zone, Merseyside.

Combined, the housing zones now designated across England could deliver up to 44,000 homes, not counting the 31 zones designated within London. The government also intends to invite local authorities in England to submit bids for future areas to be designated as housing zones.

The government has set aside capacity funding for local authorities every year since 2013, overseen by the Homes and Communities Agency (HCA). The funding can be used by local authorities to help them to understand the planning, viability and infrastructure requirements of challenging sites, ensuring that they are better prepared when negotiating with developers.

Guidance published by the government sets out some examples of the "barriers" to new development that the funding can be used to address. These include hiring more staff to manage applications for large developments; accessing expert planning and technical support and advice; supporting the development of bids for new housing zones; and accessing central government brokerage support and resources through Planning Performance Agreements.

Bids for capacity funding are due by 9 December 2016, and will be paid in the form of a Local Government Act section 31 grant to successful local authorities.

"These announcements demonstrate that the government is keen to keep the momentum going on housing policy in the lead up to the housing policy white paper to be announced at the Autumn Statement," said planning law expert Matthew Fox of Pinsent Masons, the law firm behind Out-Law.com.

"'Planning delay' is frequently a cause of criticism by developers and commentators alike, and it is hoped that this capacity funding can be properly directed to facilitate the plethora of large and complex schemes that we see are in development across the country. However, as the government pushes forward with an array of initiatives such as garden cities, housing zones, devolution, and cross-authority local plans; one wonders whether this is just good money following bad, as local authorities seek to keep up to date with a rapidly changing statutory and political context," he said.

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