Only one firm applies to £3bn building fund

A GOVERNMENT housing body revealed that just one company in Halton has applied for a share of a £3bn building finance fund up for grabs.

The Homes And Communities Agency (HCA) said it had received the bid from a ‘local SME builder’ (small or medium-sized enterprise).

An HCA spokesman said project details can be revealed when a contract has been finalised.

Housing Secretary Sajid Javid announced the £3bn Home Building Fund in October 2016.

It is open for applications to any private sector business that builds homes or prepares sites for housing developments.

The finance takes for form of loans for development or infrastructure and vary between £250,000 and £250m.

Smaller amounts can be considered for ‘innovative housing solutions’ and serviced plots for custom builders.

Typical repayment terms are up to five years for development finance and up to 20 years for infrastructure loans.

Interest is payable at pre-agreed variable rates.

Applicants must be able to show that without the funding their developments could not proceed quickly or at all.

The fund is open for proposals with at least five homes and located in England.

Borrowers must be registered in the UK.

Finance is available to be drawn down until March 31, 2021.

Interest payments comprise the European base rate of 0% plus a margin rate varying between 0.60% and 10% depending on the amount of collateralisation against the loan.

Prospective applicants can make an inquiry by filling in a form at www. homebuildingfund. campaign.gov.uk, calling 0300 123 4500, Monday to Friday, 9am to 5pm, or by email to homebuilding fund@hca.gsi.gov.uk