Housing Minister John Healey has said Government funding for housebuilding has hit £2billion since June as he announced a further £278m for an extra 5,000 affordable homes across the country.

In an upbeat end of year report Mr Healey said that Government backed housebuilding was not only helping to tackle the shortage of affordable homes but also supporting the construction industry when it needed it most – it will protect and create new jobs including 2,800 new apprenticeships.

Money released through the Homes and Communities Agency since John Healey became Housing Minister in June was boosted by the extra £1.5bn funding for the Prime Minister’s Housing Pledge, which saw Government funds switched into the building of new homes.

The Minister also pledged that this housing boost will continue into the new year. He confirmed plans to give the green light to a second phase of the biggest council house building programme for two decades, approve more cash to get workers back on building sites of developments stalled by the recession and sign off further funding for housing associations to build more low cost homes for rent or sale.

Mr Healey also said that in the New Year he will announce the first Government land for new homes under the Public Land Initiative. This is a new deal for the construction industry where Government and public agencies provide the land, but they take out the upfront costs and risks involved in site purchase and preparation allowing partners to operate at lower overheads and profit margins in the region of six or seven per cent rather than the 15-20 per cent norm for traditional housebuilders.

Over £245 million of the funding for more affordable homes will go to Housing Associations in all regions of the country, creating or protecting jobs or apprenticeships. And, as part of the Government’s Backing Young Britain campaign, the Housing Minister has put in place contractual conditions which will mean that the multi billion pound Housing Pledge investment will create not just homes but 2,800 apprenticeships in the housing construction and related sectors.

Speaking to apprentices in Leeds last month Mr Healey saw for himself how the young builders were gaining a firm foundation in their career on a new build site. The Minister is determined to continue to provide opportunities for young people, strengthening their and the industry’s future.

Schemes receiving funding in November’s allocation under the National Affordable Housing Programme include:

* £12.5m will provide 97 affordable homes in Wapping Lane, Tower Hamlets. This is the first large development site in Wapping for over a decade
* £641,663 will help provide better short term accommodation for women seeking refuge from domestic violence in Wigan
* £2,495,000 will aid in the delivery of 46 new homes in Charlton Hayes, Filton, including retail, community space and a school to serve the new development and existing communities

John Healey said:

“Today I am announcing £270million to build almost 5,000 new homes. This funding means that since June I have backed housebuilders who need to kickstart sites stalled by the recession, housing associations willing to build extra affordable homes and councils who want to build new council homes to the tune of over £2billion.

“This is what it means to use the power of Government investment to help the country through the recession by building the homes we need and creating the jobs to keep people in work. The Homes and Communities Agency has done a heroic job in making this happen.

“But I want every taxpayer’s pound to go further. That’s why I have said that if developers want a slice of Government cash then they must offer jobs for local workers and apprenticeship schemes. Last month I saw for myself how Government cash has got a stalled development in Leeds back on track and met two apprentices who now have a chance to learn the building trade on site.

“This isn’t a one off. Across the country workers are already back on mothballed sites, youngsters are getting a head start in their careers, councils are starting to build homes again and developers are getting much needed support during the recession. And crucially thousands of new homes, many for low cost rent or sale, are being built. But this is just the start and there is much more in the pipeline in the New Year.”

Sir Bob Kerslake, chief executive of the Homes and Communities Agency, said: “I am pleased that the HCA has risen to Government’s challenge to allocate this funding to places where it is needed most and where it can have the biggest impact on people’s lives. Every house we fund helps to build a community – a decent place to live, jobs for construction workers and economic activity that benefits local businesses. Seen together the HCA’s housing programmes represent a massive boost to the house building industry and a significant investment in the creation of thriving communities.”