Construction funding 'will boost affordable home numbers'

A second tranche of government funding for new home building has been welcomed by the head of the Homes and Communities Agency (HCA).

The government has announced that £180 million has been approved for the second part of its Local Authority New Build Programme, while the HCA has revealed that 12 authorities will share an extra £13.5 million from the first round.

HCA chairman Bob Kerslake remarked: "This second round of funding will add substantially to the number of new affordable homes local councils have already signed up to deliver."

The first round of funding had already brought forward £127 million of construction funding and the total budget earmarked for the programme is £460 million.

As well as government money, major investment is being sought by commercial building firms such as Barratt Developments and Redrow as they seek to increase their new home output.

Business editor at Construction News Nick Whitten said recently that it was "only a matter of time" before such firms sought this kind of finance from their shareholders.