DCLG has announced a £2.3 billion Housing Infrastructure Fund which will provide much needed funding to kick-start stalled developments and to get the ball rolling on strategic housing locations.
The scheme is expected to be highly competitive. DCLG has identified that successful bids will need to demonstrate:
– value for money based on the potential for land value uplift (in line with the new DCLG guidance)
– a strategic approach with strong local leadership and evidence of joint working
– deliverability as HIF funding must be spent by 2020/21.
While authorities are able to submit more than one bid, individual sites need to be prioritised. This really means looking at land value uplift which is likely to favour developments in high demand areas and greenfield locations. For other sites to succeed it will be particularly important that they can show that they will make a significant contribution to housing supply, that the new homes would not be delivered without HIF funding, and developing the site will not result in fewer homes being built elsewhere.
The deadline for applications is 28th September 2017 and although the forms are not yet available, early thinking about priorities should begin now. The Regeneris team have a good understanding of the land value approach for prioritising sites and making the case for investment. We can support the development of bids, advise on the strategic case for investment, and help to demonstrate where sites will make a genuinely additional contribution to housing supply.
If you would like to find out more about the implications of land value uplift for putting together a strong HIF bid, please contact Margaret Collins (firstname.lastname@example.org), Darren Wisher (email@example.com) or Daniel Lindsay (firstname.lastname@example.org).