30 Aug 2015

Custom Build Serviced Plots Loan Fund applicants shortlisted

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Custom Build Serviced Plots Loan Fund applicants shortlisted

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.

The HCA commented that the enquiries it has had about the fund represent a broad geographical spread across England, including Community Land Trusts.

Shortlisted bids so far

 

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.

Editor’s comment

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.

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