The second phase of the Custom Build Serviced Plots Loan Fund has its first potential applicants going through Due Diligence prior to approvals.
Funding for a range of custom build sites is one step closer as the government’s flagship Custom Build Serviced Plots Loan Fund (CBSPLF) embarks on a Due Diligence and Know Your Customer process. The fund, which will determine the viability of applications shortlisted for funding, has to date one project in contract, Potton’s French Fields site, with another two schemes progressing towards contract.
The Custom Build Serviced Plots Fund, which is only for England, has a recoverable loan pot of £150 million to help get custom build housing plots across England ready for construction. Bids are accepted from small- and medium-sized enterprises with outline permission for 5 or more serviced plots. The £150 million fund is available until 2020 and around £7 million has been set aside for 2015/16. The Government expects the fund to enable up to 10,000 serviced plots.
|Lead applicant||Applicant type||Local authority||Site name||No. of plots||HCA loan total|
|Westward (UK)||Private||St Helens||French Fields||19||£294,000|
|Developing Solutions||Private||South Norfolk||Ringwood Close||14||£300,000|
|South Dene Developments||Private||West Lindsey||South Dene Park||8||£265,500|
Click here for the fund propsectus.
There is something at odds with a fund that is due to enable 10,000 plots by 2020, which in its first wave of approvals has earmarked £850,000 to help provide 41 plots. You don’t need to be a mathematician to realise that there is something wrong here. With over £14m left in the fund for the next four years, there are still 9,959 plots to bring forward. Development on this scale needs far more support from government to speed up the process or improve the access to the fund.
Brandon Lewis may have talked about the “massive potential” of custom build, but speaking to developers and enablers, it’s a common complaint that they don’t feel they’re able to access the fund. What are your experiences, and what do you think would improve the Custom Build Serviced Plots Loan Fund.