PARLIAMENTARY WRITTEN QUESTION
Housing: Construction (4 December 2014)

Get Britain Building is a three-year scheme to provide development finance to unlock stalled sites.

As explained to the hon. Member in the answer to her of 13 March 2014, Official Report, Column 312W, the prospectus for the first round of Get Britain Building programme was published on 22 December 2011. The prospectus for the second round was published on 21 June 2012. In both cases, the expressions of interest received after each prospectus were followed by due diligence and a contract agreement process. In that light, there was no expenditure in 2011, £29 million in 2012, £281 million in 2013 and (up to November 2014) £132 million in 2014.

Across financial years, we anticipate expenditure of £159 million in 2012-13, £213 million in 2013-14 and £125 million in 2014-15. The programme should come in slightly under the budget headroom due to improving market conditions.

Each contract agreement includes arrangements for the financial drawdowns under the facility, and there may be a number of drawdowns as a site is built out. Since interest is payable on the loans, contractors drawdown the agreed development finance as needed. This explains why the expenditure is incurred over the course of the programme rather than up front; however, the existence of the finance facility in itself gives developers the confidence and financial security to get building again.