John Healey: Power of £4.2billion Government investment is keeping Britain building

Published 31 March 2010

Housing Minister John Healey has today outlined how the power of Government investment has helped keep Britain building in the teeth of recession, safeguarding jobs and delivering the new homes the country needs.

Kickstart mapsMap showing the kickstart developments
See the maps in detail:
- Round 1 (external link)
- Round 2 (external link)
- Latest sites (external link)

Today, he announced a total of £263 million additional funding for new affordable homes and to kickstart stalled developments, and announced that three new publicly-owned sites are to be made available for housebuilding under the Public Land Initiative.

He also confirmed every one of the 141 stalled housebuilding sites in the first round of the Government's Kickstart funding have workers back on site building over 10,000 new homes.

Since June, he has given the go-ahead for £4.2billion Government investment for councils, housing associations and private developers to build over 75,000 much-needed new homes across the country.

This cash injection will create and safeguard 88,000 new jobs and 3,000 apprenticeships. But Mr Healey requires all organisations receiving Government funding to provide local jobs and apprenticeships, meaning that even more employment opportunities are in the pipeline.

Every region has benefited from this Government cash boost for housing during the recession.

John Healey said:

"From Barnsley to Brighton, the power of Government investment has meant that in the teeth of recession, we have kept Britain building. That's why today I can confirm I've given the go-ahead for £263million to create and safeguard 5,500 jobs, build much-needed new homes and help strengthen the economic recovery.

"We've been ready to take unprecedented Government steps to help the country through the recession and today's extra funding takes total Government housing cash to £4.2billion since June. This investment will now help economic recovery in every region of the country.

"This public investment has been a vital boost to jobs and housebuilding during the recession, and it's equally important to economic growth in the future. We can't cut our way into economic recovery over the coming year - we must invest in building the new homes that people need."

Through the £4.2billion funding boost Mr Healey has launched the biggest council house building programme for nearly two decades, given cash to kickstart work on 252 private sites and introduced a new deal for developers to build on public land.

This Government investment in housing associations, councils and other developers since June means over 55,000 new affordable homes will be built for rent, or sale through the Government's help for first time buyers.

The new money confirmed today includes:

  • £236m for housing associations and others to build over 4,300 new homes,
  • £27.5m for 24 kickstart sites,
  • Three new sites under the new Public Land Initiative at:
    • Lightmoor Urban Village, Telford ('The Croppings Parcel A') - 100 homes are planned for the site, 30 of which will be affordable. Work is due to start in November 2010; and
    • Mildmay Regeneration Project, Tower Hamlets - 139 homes are planned for the site, of which 49 will be affordable. Work is due to begin in August 2010, subject to planning permission.
    • Birmingham - six sites owned by Birmingham City Council - 230 homes are planned across these sites, of which 80 will be affordable. Work is due to start in September 2010.

Mr Healey has also today given the go-ahead for £27.5m Government funding to be made available to 24 stalled housing developments through the second round of the Kickstart programme, to get building work back on track and workers back on site. The numbers of successful projects receiving Kickstart funding in each region are in the table below:

Region Number of projects Amount of Investment (£'000s) Number of homes (Gross) 
East of England 6 4,743 452
East Midlands 3 6,039 149
North East 2 624 110
North West 2 1,353 105
South East 3 9,486 334
South West 1 372 50
West Midlands 2 524 103
Yorkshire and the Humber 5 4,396 234
Total             24 27,538 1,537

Three projects in London have already been allocated over £5 million under Round 2 of Kickstart, with more in the pipeline for approval.

This is on top of 141 schemes that have already benefited from £424million funding through the first round of the Kickstart programme. From today, every one of these previously stalled developments is now getting back on track. A further 87 schemes have already been allocated nearly £83m under round two of the scheme.

The Minister has also today confirmed that three new sites will be made available under the Public Land Initiative. This new deal for housebuilders makes publicly owned land available for house-building, but takes out the upfront costs and risks involved in site purchase and preparation, and looks to secure pre-sales meaning better operating costs for the housebuilders and attracting non-traditional developers to the housing industry.

These sites are in addition to the first sites made available under the Public Land Initiative in Doncaster, Milton Keynes and Newcastle.

Notes to editors

1. The locations of Kickstart Round One projects can be viewed here (external link).
Please note: all Kickstart Round One locations are mapped according to postcode data and should be accurate to within 500m or to the Local Authority Area.

2. The locations of 24 new Kickstart Round Two projects can be viewed here (external link).
Please note: all Kickstart Round 2 locations are mapped according to postcode data and should be accurate to within 500m or to the Local Authority Area. Unit numbers and allocation funding may be subject to change until contracts are signed.

3. The locations of Kickstart Round Two projects can be viewed here (external link).

4. The successful projects receiving funding through the Kickstart scheme today are:

 Region  Scheme  Developer  Local Authority Area  Total number of units
North East Finchale Avenue, West Rainton Keepmoat County Durham 38 market sale/rent, 12 Homebuy Direct (HBD)
North East The Kylins, Morpeth Persimmon Northumberland 31 market sale/rent, 19 HBD, 10 social rent
North West     Kingsmead, Prenton Lowry Homes Wirral 51 HBD
North West
Woodbury Park, Newton le Willows Barratts St Helens 26 Market sale/rent, 28 HBD
Yorkshire and Humber   Menston Hall, Menston Incommunities Bradford 6 market sale/rent, two Homebuy Direct, 17 Low Cost Home Ownership (LCHO), 5 social rent
Yorkshire and Humber Unity, Mexborough Strata Homes Doncaster 22 Market sale/rent, 10 HBD, 21 social rent
Yorkshire and Humber Richmond Park, Richmondshire Broadacres Housing Association Richmondshire 15 HBD, 16 social rent
Yorkshire and Humber Keighley Road, Halifax Redrow Calderdale 29 market sale/rent, 30 HBD, 11 social rent
Yorkshire and Humber Priory Chase, Pontefract Miller Homes Wakefield 20 market sale/rent, 30 HBD
West Midlands Clanway Brickworks, Stoke-on-Trent JS Bloor Stoke On Trent 44 market sale/rent, 8 HBD
West Midlands Bracken Gardens, Lichfield Barratts Lichfield 10 market sale/rent, 22 HBD, 19 social rent
East Midlands Rockingham Road, Corby Westleigh Developments Corby 18 HBD, 17 LCHO, 32 social rent
East Midlands Mistral, Retford Strata Homes Bassetlaw 30 market sale/rent, 10 HBD, 10 social rent
East Midlands Deeping St James, South Kesteven Larkfleet South Kesteven 7 HBD, 6 LCHO, 19 social rent
Phase 1 Lady Lane, Hadleigh Persimmon Babergh 20 market sale/rent, 17 HBD, 9 LCHO, 26 social rent
East Cam Locks, Waterbeach Morris Homes South Cambridgeshire 20 market sale/rent, 42 HBD, 9 social rent
F1/F2 St Neots Miller Homes Huntingdonshire 30 market sale/rent, 20 HBD
East Riverside Place, Basildon Bradgate Developments Basildon 28 market sale/rent, 35 HBD
East Hayhill Allotments, Ipswich Crest Nicholson Ipswich 24 market sale/rent, 19 HBD, 16 LCHO, 54 social rent
Cow Lane, Watford Barratts Watford 30 market sale/rent, 53 HBD
South East Broughton Chase, Milton Keynes Milton Keynes Partnership Milton Keynes 25 Market sale/rent, 20 HBD, 5 LCHO
South East Southlands Hospital, Shoreham Crest Nicholson Adur 67 market sale/rent, 12 HBD, 15 LCHO, 30 social rent
South East  Site 6, North Bersted, Bognor Regis Persimmon Arun 16 market sale/rent, 79 HBD, 24 LCHO, 41 social rent
South West Trinity Park, Frome JS Bloor Mendip 36 Market sale/rent 14 HBD

5. A breakdown of the £4.2billion funding allocated since June is published today and can be found at: www.communities.gov.uk/housingpledgefunding (excel).

6. Other examples of projects receiving Government funding include:

North East

  • Park Avenue & Greenside Place, Crook, Durham £3,450,000 Government cash will help build 67 affordable homes on these linked sites, replacing outdated and unpopular sheltered accommodation. Four new apprentices will learn their trade onsite.
  • £3 million to kickstart The Grange, Bowburn, in County Durham is supporting construction of 80 new homes. Public investment in the site has meant the creation or safeguarding of over 50 jobs, while developers Dunelm Property Services plan to give at least four young people opportunities through their apprenticeship scheme.
  • Fossway, Newcastle upon Tyne has been supported with £1.3m Government cash to build 13 homes for people with learning disabilities. The scheme, regenerating the site of a former fire station, is situated on the site of Hadrian's Wall, and will include a special cobbled section to mark the line of the Roman wall. 

North West

  • Three small sites on Woodchurch Lane, Kennet Close and Cherrybank in Wirral have received £1,437,850 to build 23 council homes built to high eco-standards. Three apprentices are training on the sites.
  • Tranmere Site E in Birkenhead, Merseyside is part of a wider residential development programme for Birkenhead. It had stalled due to the economic downturn and market failure but is now back on track thanks to £1m Kickstart cash. 56 homes will be ready for sale by March 2011.
  • Peaches Night Club, Stockport, Greater Manchester - Thanks to £2.5m government cash 50 quality affordable homes will be built at the former Peaches Night Club as part of the refurbishment and extension of three historic buildings in the historic Hillgate Conservation area.

Yorkshire and Humber

  • East Riding council is embarking on its biggest ever building project which will see the first new council homes constructed in the area for a generation. Thanks to £16m Government cash 275 homes will be built to help take some pressure off the local waiting list and get people into homes that are right for them. The building work will create up to 50 construction jobs with hundreds more for trade professionals, as well as 15 apprenticeship posts;
  • In Keighley Road, Halifax , £700,000 Kickstart funding will help build 111 homes on a vacant brownfield site, including 50 homes to be purchased under HomeBuy Direct, by March 2011;
  • 1-3 Eleanor Street in Grimsby is benefitting from £1.7 million to create 35 bedsits for Single homeless people with the Salvation Army Social Work Trust.

East Midlands

  • St Johns in Enderby, Blaby , has been kickstarted with £1million for 54 homes. The foundations for 3 plots had already been laid when the site stalled in the summer. Now nack up and running, the finished site will offer 16 homes for low cost home ownership and a further 13 social homes.
  • The Burmese Cat, Melton : £1.4 million to build 20 new homes on the site of the derelict former pub will regenerate an area where antisocial behaviour is common. The old and vandalised play area in the adjoining open space will also be removed and renewed.
  • Norwood Gardens, Southwell has benefited from £322,279 for 7 new affordable homes on a former garage site in an area of particularly high property prices. Two new apprentices will be employed through the funding.

West Midlands

  • Dudley Council have received £4.3m to build 81 new council houses on five sites which will be a mix of two-storey apartments, bungalows and houses.  This is also set to benefit local young people as 8 apprenticeships will be created.
  • Windsor Road, Redditch -  Persimmon and Westbury Partnerships have received £3,212,500 to Kickstart a stalled development and deliver 162 homes including 2, 3 and 4 bedroom homes. 128 of these will be affordable homes for first time buyers and 34 will be for affordable rent.
  • Perryfields Road, Bromsgrove -  West Mercia Housing Group and Bromford District Housing Trust are receiving £5.8m to build 118 new homes, over half of which will be affordable homes for first time buyers.

East of England

  • Port Lane, Colchester - Bellway has received £729,000 to kickstart a stalled development and deliver 109 homes the majority of which will be larger houses. Of these 30 will be affordable homes for first time buyers and 47 will be for social rent.
  • Oxwich Close, Thurrock  - Thurrock Council has received £1,042,500 Government funding to build 15 new council homes and create two local apprenticeships. This will regenerate an empty garage site with new homes that meet the high environmental standards of Level 4 of the Code for Sustainable Homes.
  • Parklands, Shoeburyness - Bovis Homes has received £2m Government funding to get a mothballed development back on track and deliver 73 new two and three bedroom homes.


  • Stonegrove, Barnet , is benefiting from £2.5 million to build 98 homes. The investment has supported the jobs of the 200 workers at Stonegrove and 6 apprentices learning their trade as plumbers, electricians and bricklayers will be trained on site.
  • At Barrier Park, Newham , £28,252,425 Government investment will help build 270 affordable homes that with a high sustainability rating. Combined Heat and Power and biomass boilers providing energy on site will mean that the development will produce 20 per cent less CO2.
  • £45 million for Kidbrooke in Greenwich will help build 4,000 homes as part of the  transformation of the former Ferrier Estate. The project will take approximately 15-20 years to complete, but the first residents are due to move in during Spring 2010.

South East

  • Basingstoke Road, Reading A £3.1m Government cash is helping Reading Borough Council to convert a former school site into a 40 flat extra-care facility for the elderly or those with support needs, which will provide 27 one-bedroom flats and 13 two-bedroom flats. Work will begin in May, creating over 40 jobs, with the council aiming to hire apprentices and support the local workforce.
  • St Mary's Island, Chatham £6,932,000 has Kickstarted the development of 103 homes in the Thames Gateway, supporting around 150 jobs and five apprenticeships.
  • Wilmington Way, Haywards Heath is receiving £3.55m to build 71 affordable homes to replace 109 outdated homes in disrepair. Construction is anticipated to begin in September this year in three phases, with the final phase expected to be complete by June 2013.

South West

  • Crediton Road, Okehampton, West Devon  - Persimmon has received  £1,772,250 Government funding to kickstart a stalled housing development and deliver 72 new homes most of which will be three or four bedroom houses. These will be affordable homes available to first time buyers through the HomeBuy Direct scheme.
  • Mallard Road, Bournemouth  - Bournemouth Council has secured £540,000 Government funding to build the first new council housing in seven years in Bournemouth. The funding will help deliver 10 flats and 2 family homes which will be completed by October.
  • Carne Hill, Trewoon, Cornwall  - Coastline is receiving £2,496,300 Government funding for a rural housing scheme to build 41 new homes, of which 29 will be for rent and 12 will be affordable homes for first time buyers through the HomeBuy scheme. These are due to be completed by December 2010.


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