Bridging Finance News:-Homes England, the government’s housing development agency, has bought 19 sites worth £180m to build up to 5,000 new homes.
Several of the acquisitions were completed just before the end of the financial year, with the agency re-affirming its position to back housebuilding post the Covid-19 pandemic.
Homes England chief land and development officer Stephen Kinsella said: “As a master developer, it’s crucial we continue to create development opportunities and provide a pipeline of sites for housebuilders of all sizes, despite the challenging situation the industry is facing.”
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
One of the sites includes 37-acres at Panshanger Aerodrome in Welwyn Garden City, Hertfordshire with the capacity to build 815 homes. Nearly a third of the homes would be affordable with a new primary school, a community centre and self-build spots. Homes England would deliver the infrastructure before marketing the site in parcels to developers.
Midlands and the North set to benefit with major housing schemes
In Birmingham, the agency has bought 2.5 hectares in the Digbeth district from the city council. The Montague Street plot is the final acquisition of four parcels of land in the area, which will create one of the largest development sites in the city centre. The site will have a capacity for 1,000 new homes and 25,000 sq metres of employment space.
Home England has also acquired Bristol’s 10-hectare Brislington Meadows from the local authority and private landowners. It has the capacity to deliver 300 new homes, of which a third would be affordable, as allocated in Bristol’s local plan since 2014.
In the North, 81 hectares of land in Darlington has been bought to allow 800 new homes to be built as part of the Burtree Garden Village. Homes England has entered a collaboration agreement with lead developer Hellens Group and will work together with adjacent landowners on site-wide infrastructure to enable the delivery of the entire scheme.
Just south of Rugby, the agency has acquired land totalling 65 hectares from Warwickshire County Council, where 900 homes are expected to be built. Homes England said delivery of infrastructure and a link road, crucial to the wider south west Rugby expansion, would accelerate the pace of construction of the new homes.
Homes England interim chair Simon Dudley said: “I want to reassure the sector that we are very much open for business and investing in a long-term pipeline of development opportunities to support market recovery.”
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Broker Hank Zarihs Associates said development finance lenders would be ready to fund housebuilders successful in bidding to develop on the key sites the agency had bought.