Banks invited to bid for slice of £400m housing fund

The government is to appeal directly to banks as part of its £400m Budget initiative to get homes built on stalled sites.

A source within the Homes and Communities Agency (HCA), which will administer the cash, said the agency was going to ask banks to bid alongside housing associations and housebuilders.

The source said: “Some banks have told the agency they have direct ownership of land, through refinancing housebuilders. So we think it’s right that they should be able to bid.”

The news comes as major housebuilders and housing associations are lining up to apply for the fund, revealed in last week’s Budget.

Banks own land from refinancing. It’s right they should be able to bid

Source at the HCA

Countryside Properties, Barratt Developments and Hyde Group are among those hoping to receive some of the cash, for which they will be asked to apply formally in May. Proposals could include grant or gap funding, equity sharing or paying upfront for infrastructure. Housebuilders Taylor Wimpey, Redrow and Bellway have all said they are considering putting in bids.

Countryside is in talks over 10 schemes that could provide about 6,000 homes. Michael Hill, business development director, said the £3.7bn 10,000-home Canning Town and Custom House projects could also benefit.

A spokesperson for Barratt Developments confirmed the housebuilder was talking to the HCA about accessing the money.

Peter Andrews, chief executive of the London Thames Gateway Development Corporation, said he was liaising with the HCA to unlock “three or four” schemes. Hyde Housing is in talks about funding its regeneration scheme with Brent council in south Kilburn, north-west London.