Newsroom

Property industry welcomes £500m government funding to unlock stalled development

The British Property Federation (BPF) has welcomed Eric Pickles’ announcement that communities will be able to bid for a share of £500m, aimed at kick starting stalled development and economic growth.

The Growing Places Fund, announced today by the Secretary of State for Communities and Local Government, is targeted at delivering infrastructure such as link roads and bridges that have the capacity to unlock currently unviable development.

Liz Peace, chief executive of the British Property Federation, said: “Many developments conceived in a different economic climate are no longer viable; one of biggest problems is meeting the upfront cost of infrastructure without which developments simply can’t get off the ground.

“This initiative provides an opportunity for local enterprise partnerships to work with developers and local authorities to identify those schemes where additional funding could make the biggest difference. Those submitting bids will need to have canny plans and sharp elbows, but the money will help address the immediate infrastructure and site constraints that have caused the blockage.”

Funding long-term infrastructure remains one of the country’s biggest challenges. It has been estimated that the UK needs to spend £500 billion over the next decade to bring its infrastructure up to scratch. While the BPF welcomes the Growing Places Fund it believes it will make only a small dent in the backlog. It urges further tranches of funding to be made available under the Growing Places initiative, and the government to take forward tax increment financing (TIF).

Peace added: “Investing in infrastructure makes sound economic sense. Every pound of properly targeted infrastructure investment can generate up to ten times the initial investment in broader economic benefits. We need to seize the potential that infrastructure spending has both to generate growth at a time it is so badly needed and to boost the UK’s long-term competitive position.”

ENDs

Patrick Clift, Media and Public Affairs Manager, on 07834 439 505 or at pclift@bpf.org.uk
Paul Sweeney, Media Officer, on 07841 732 194 or at psweeney@bpf.org.uk

 

Tweet