£1bn to kick-start house building

Ministers have announced a scheme to get builders back onto unfinished housing developments

Hundreds of building projects that have stalled in the recession are to be kick-started with almost £1 billion of public money, the Government has announced.

The cash is being targeted at developers and housing associations who can get developments back under way by the end of the year but cannot get funding from elsewhere.

Some 20,000 jobs are expected to be created in the process. Up to 22,400 new homes, more than a third of which will be "affordable", could be built.

Almost half of the money will be in the form of loans, to be repaid within five years.

Housing minister John Healey announced that 270 development projects are in line for a share of £925 million, although they will still have to undergo due diligence.

But he stressed that the Government was not awarding developers a "handout".

"There are tough terms to this deal including repayment of loans within five years," he said.

"And only builders who accept a realistic current market price for their homes are eligible.

"I want to see builders back on these sites within weeks. So I will be calling on successful developers to pull out all the stops so construction can restart as quickly as possible."

Mr Healey added: "We've pledged to use the power of Government investment to help Britain through the recession."