On 26th June 2014, the Government published their prospectus for a loan fund for custom built homes. The prospectus sets out how to access part of the £150m loan fund in recognition that this sector provides an important contribution to housing supply, with about one in every ten homes being built or commissioned by individuals.
Funding is based on a fully recoverable loan and is available to bring forward sites of 5 or more serviced plots which are all ready for planning permission to be implemented. The fund is only available for qualifying expenditure, which includes:
Infrastructure, such as the construction of access roads, footpaths and cycle ways.
Provision of on-site utilities and services.
Costs associated with demolition of existing buildings.
The fund cannot be used for land acquisition costs, S106 obligations or construction costs for the homes themselves and, therefore, it is only going to be of limited benefit. For the right project where cash flow is an issue, the fund will be a welcome addition.