Loan fund provides cash to get work under way

0
438

Four house building projects will receive a share of 1.8 million pounds from a loan fund designed to kick-start stalled construction sites, Deputy First Minister Nicola Sturgeon announced today.

It is the second tranche from the 10 million pound House Building Infrastructure Loans Fund, announced in September 2011, which is expected to support over 1,000 new homes.

Building firms are encouraged to apply for repayable loans when they are unable to secure private-sector finance for physical infrastructure, such as roads, sewers, pipes and cables, to enable construction to get underway.

This latest phase will see a total of 270 new homes built in Newtongrange, Edinburgh and Irvine.

The news comes as the Deputy First Minister announces tomorrow that the Scottish Government has updated its multi billion pound Infrastructure Investment Plan (IIP).

It contains all infrastructure projects and programmes worth more than £20 million that are planned and underway across Scotland up to 2030.

Ms Sturgeon said:

“The Scottish Government believes that investment in construction is needed to support Scotland’s economy, promote growth and maintain jobs.

“That is why we have responded positively to the calls from the house building industry to put in place this fund to kickstart projects across Scotland.

“This fund is designed to help in specific cases where building firms have been unable to secure private-sector finance to help fund the necessary supporting infrastructure to enable construction to get underway.

“The criterion for the second round of funding was revised to untie red tape so that more companies could come forward with their infrastructure proposals.

“As a result, the latest successful applications will lead to diggers rolling back in on sites across Scotland.

“Tomorrow I will publish an updated Infrastructure Investment Plan, illustrating our ambitions for investment in Scotland’s infrastructure right up until 2030. That will be a further boost for the construction industry, helping them plan for the future too.”

Jane Innes Smith, managing director of Springfield Properties Limited added:

“It is very encouraging to get this support from government which is good for jobs and good for our customers.

“The Scottish Government’s package around shovel ready projects recognises the importance of house building to economic recovery and it’s great to see it actually working for ordinary people.

“This loan means we can get on with the development creating 60 new jobs on site and generating business and work for our suppliers.

“And it means that our customers will be able to move into the high quality, highly energy efficient homes at Powederhall Gate all the sooner.”

The successful projects in the second round of funding from the fund are:

  • Suttieslea Road, Newtongrange – Crudens Homes (East) Limited 
    (£387,500 to develop 76 units)
  • Gracemount Phase 2, Edinburgh – Crudens Homes (East) Limited                                                        
    (£130,000 to develop 84 units)
  • Beaverhall Road, Edinburgh – Springfield Properties Limited
    (£926,000 to develop 80 units)
  • Harbourside, Irvine – Irvine Bay Developments Limited 
    (£400,000 to develop 26 units)

Phase one of the fund has already committed distributed over £3 million to support the building of 800 new homes.

The Scottish Government is continuing to work with further applications to the fund to indentify where further funding may be possible.