Kick start for housing development
- Published on Friday, 09 September 2011 14:45
- Posted by Scott Buckler
The Scottish Government has responded to calls from the industry to help housing companies who are unable to secure private sector finance with a new £10 million loan fund which aims to unblock developments by investing in upfront infrastructure
The Housebuilding Infrastructure Loan Fund will offer repayable loans to support physical infrastructure such as roads, sewers, decontamination, flood remediation and demolition.
Cabinet Secretary for Infrastructure and Capital Investment Alex Neil said:"The house building industry has made clear that some major developments in Scotland have stalled in the current tough financial climate as the funding to build the necessary infrastructure just has not been available."We have listened carefully and this fund is designed to specifically target that problem and kick start a range of developments in urban and rural communities across Scotland."Loans will be for companies to build the roads or lay the pipes and cables that mean housing developments can go ahead."Unlocking development in this way will deliver a major boost to the Scottish economy worth far in advance of the initial £10 million investment and supporting many construction industry jobs."We are working hard to mitigate the effects of Westminster's short-sighted and economically damaging capital spending cuts."
Jonathan Fair, Chief Executive of industry body Homes for Scotland, said:"With the number of new homes continuing to languish at stubbornly low levels, today's announcement demonstrates that the Scottish Government is prepared to grasp the nettle in terms of the barriers to development in the current economic environment and begin to help break them down with actions to unlock housing construction."
Gavin Pope, Land Director CALA Homes East (Ltd), said:"CALA Homes welcome any initiative that will help to break down some of the barriers faced by the house building sector in Scotland."The industry is a vital element of the Scottish economy and initiatives such as this will go some way to both supporting Scottish jobs and helping developers to meet the demand for new homes in Scotland."David Gunderson, Deputy Managing Director of Walker Group (Scotland) Limited, said:"We welcome any initiative to assist the house building industry access important new funds to deliver key elements of infrastructure necessary to deliver much needed new homes, and to hopefully see the initiative extended in future."
Source: Scottish Government