Business News

London Developers Receive £300m Seed Funding From Government

Three schemes, with a total capacity for up to 20,000, are receiving loans from Homes England.

The government’s housing agency has pledged to lend a total of £309m to housing developments in Brent Cross, Silvertown and Barking Riverside. The loan is set to speed up the construction of housing in London by around 4 years.

The scheme in Brent Cross will receive a £148m loan, funding land and infrastructure works and ultimately enabling the delivery of 6,700 homes. Brent Cross South Limited Partnership (BXS LP) is behind the scheme, and is also developing office space, community and leisure facilities, as well as schools.

Over in Silvertown, a partnership combining Starwood Capital Group and Lendlease, is set to release 3,000 or more new homes with a £105m loan. The development in the Royal Docks, Newham, will hold space for offices, as well as retail and leisure space.

Barking Riverside is set to see the development of over 10,000 new homes. Barking Riverside Limited are responsible for this development, with plans including commercial and leisure spaces, schools, healthcare facilities, and a London Overground station.

Chief Investments Officer at Homes England, Gordon More, stated of the loans:

“Despite the unusual and challenging situation the housebuilding sector, and indeed the whole country, is currently facing, Homes England remains open for business and committed to helping our partners deliver much-needed new homes.

By investing in projects on this scale and allowing funding to be recycled into future phases of development, we are able to support significant schemes where commercial lenders may not. This means these three major developments can invest in the infrastructure they need to deliver in these uncertain times and accelerate the delivery of new homes.”

The exciting development plans offer a glimmer of hope for the industry, with Housing Minister Christopher Pincher describing the loans as ‘a real statement of intent.’

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