Over 200 stalled building projects will receive a share of a multi-million pound pot to get Britain building again, Housing Minister Grant Shapps has announced.

The news came as the Prime Minister announced an extra £150 million for the Get Britain Building fund - taking the total to £570 million, paving the way for up to 16,000 new homes and supporting over 30,000 construction jobs and more in supply chains.

The Get Britain Building investment fund will get development finance directly to building firms. Funding will be provided through recoverable investments, with the majority being commercial loans, ensuring that money will be returned to be re-invested in other priorities.

The fund was three times over-subscribed and the Homes and Communities Agency today has shortlisted the strongest bids from nearly 400, based on value for money, how quickly they will be delivered and the level of local support.


The successful bids, which include a high proportion of developments by smaller and medium sized builders, will now be thoroughly assessed through due diligence before funding is allocated and formal contracts can be signed.

The £570 million fund is being targeted at commercially viable, shovel-ready sites with planning permission already in place to get them building again as soon as possible.

Ministers have already announced a shortlist of 18 difficult stalled sites for a share of the first £45 million of this funding to get them back on track and build 1,300 homes, which will help breathe life back into communities across the country. Some of these key projects are already on track to start building from April 2012.

Mr Shapps said: "Housebuilding is absolutely vital for delivering more growth in the economy, yet hundreds of shovel-ready housing developments have been put on ice, because builders lack funds to get work going on site.

"The £570 million Get Britain Building Fund will help end the deadlock by getting construction back on track for up to 16,000 homes across the country. Already some of our key sites are on track to get started next month, and many more of the 224 projects shortlisted today will be up and running from June, helping to cement our economic recovery."

(CD/GK)