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| £525m Builders' Finance Fund: Only £1m allocated | £525m Builders' Finance Fund: Only £1m allocated |
| (about 11 hours later) | |
| Builders have been given only £1m of a £525m fund to kick-start construction of houses in England, it has emerged. | Builders have been given only £1m of a £525m fund to kick-start construction of houses in England, it has emerged. |
| The government's Builders Finance Fund (BFF), launched in April 2014, aimed to "unlock" hundreds of housing projects stalled by the economic slowdown. | The government's Builders Finance Fund (BFF), launched in April 2014, aimed to "unlock" hundreds of housing projects stalled by the economic slowdown. |
| But just two projects have so far benefited from the fund which ends in March 2017. | But just two projects have so far benefited from the fund which ends in March 2017. |
| The government said there had been "high levels" of interest from builders and "many" schemes would get funding. | The government said there had been "high levels" of interest from builders and "many" schemes would get funding. |
| The government has set a target of building one million homes by 2020 after a number of years in which targets have been missed. | The government has set a target of building one million homes by 2020 after a number of years in which targets have been missed. |
| Initiatives include BFF which offers loans to builders with planning permission for between 15 and 250 homes. | Initiatives include BFF which offers loans to builders with planning permission for between 15 and 250 homes. |
| When it was launched, the government called it a "key part" of its long-term economic plan. | When it was launched, the government called it a "key part" of its long-term economic plan. |
| "Work on nearly 13,000 homes stalled by the 2008 housing crash are set to be restarted thanks to half a billion of government investment," the Homes and Communities Agency (HCA) said in September last year when it announced 160 schemes had been shortlisted for funding. | "Work on nearly 13,000 homes stalled by the 2008 housing crash are set to be restarted thanks to half a billion of government investment," the Homes and Communities Agency (HCA) said in September last year when it announced 160 schemes had been shortlisted for funding. |
| But a response to a BBC Freedom of Information request the HCA revealed only two schemes, in Cornwall and Essex, have benefited so far: | But a response to a BBC Freedom of Information request the HCA revealed only two schemes, in Cornwall and Essex, have benefited so far: |
| Rico Wojtulewicz, policy advisor for the House Builders' Association, said builders had doubts over the fund's viability or found the rules too complicated. | Rico Wojtulewicz, policy advisor for the House Builders' Association, said builders had doubts over the fund's viability or found the rules too complicated. |
| "The government stated that the fund would bring 13,000 new homes but that has clearly not been the case over the past year," he said. | "The government stated that the fund would bring 13,000 new homes but that has clearly not been the case over the past year," he said. |
| "More attention should be put into how to increase take-up." | "More attention should be put into how to increase take-up." |
| Sarah McOnagle, of the Federation of Master Builders, said: "We are disappointed that take-up is so low. | Sarah McOnagle, of the Federation of Master Builders, said: "We are disappointed that take-up is so low. |
| "We want to work and try to change it and make it more simple to access." | "We want to work and try to change it and make it more simple to access." |
| Norman Ewen, finance director of Hallmark Developments, said the funding would make 20 homes ready by Spring 2016, a year earlier than without the funding. | Norman Ewen, finance director of Hallmark Developments, said the funding would make 20 homes ready by Spring 2016, a year earlier than without the funding. |
| He added: "We totally underestimated the complexities of the loan security arrangements and also how long it would take for the lawyers to all agree on the wording of the various documents." | He added: "We totally underestimated the complexities of the loan security arrangements and also how long it would take for the lawyers to all agree on the wording of the various documents." |
| Poltair Developments chief executive Ron Ley said the BFF loan had led to the building of 22 homes on the Padstow site. | |
| "The fund is about delivering the houses that the country desperately needs and the HCA led us through the process extremely well," he said. | "The fund is about delivering the houses that the country desperately needs and the HCA led us through the process extremely well," he said. |
| "But building more houses is not just about funding - it's also about tackling the very long planning process and the numerous conditions associated with it." | "But building more houses is not just about funding - it's also about tackling the very long planning process and the numerous conditions associated with it." |
| An HCA spokeswoman said: "We are supporting the government's objective to get Britain building again, and deliver thousands of new homes for hard working families including affordable homes. | An HCA spokeswoman said: "We are supporting the government's objective to get Britain building again, and deliver thousands of new homes for hard working families including affordable homes. |
| "The Builders Finance Fund is an important part of this." | "The Builders Finance Fund is an important part of this." |