Budget pledges an extra £500 million for Housing Infrastructure Fund

BUDGET 2018 The government today pledged an extra £500 million to the Housing Infrastructure Fund (HIF), claiming that the extra cash will unlock 'up to 650,000 new homes'.

Housing: Budget proposals unveil package to unlock 650,000 new homes
Housing: Budget proposals unveil package to unlock 650,000 new homes

The announcement is part of the Budget package unveiled today by chancellor of the exchequer Philip Hammond, and means the total HIF pot will increase to £5.5 billion.

A specific beneficiary of the HIF pot is £291 million of funding to unlock 18,000 new homes in East London through improvements to the Docklands Light Railway.

Elsewhere, an extra £20 million of funding is also pledged to the East-West Rail project to improve links between Oxford and Cambridge, "to develop a strategic outline business case for the railway," the budget document sais.

"This will explore which routes best support the government’s vision to unlock up to 1 million new homes by 2050," it says.

Also announced is the extension of the Transforming Cities Fund by a year to 2022-23.

This will provide an extra £240 million to six metro mayors for "significant transport investment" in their areas, the government says.

Some £71.5 million will be granted to the West Midlands, £69.5 million to Greater Manchester, £38.5 million to the Liverpool City Region, £23 million for the West of England and £21 million to Cambridgeshire and Peterborough.

Some £75 million from the Home Building Fund will be provided to developer St Modwen plc, to fund infrastructure to support the building of 13,000 new homes, the Budget document adds.

The budget announces that the Housing Revenue Account cap that controls council borrowing for house building will be abolished immediately, "enabling councils to increase house building to around 10,000 homes per year."

It also announces that a new five-year strategic business plan for government agency Homes England will be published tomorrow.

 


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