The Homes & Communities Agency is close to sealing a funding deal with councils in Lancashire to unlock sites for 17,000 homes.
The deal will see the HCA transfer 11 sites valued at £50.7m to Preston, South Ribble and Lancashire councils. After planning has been secured, they will be sold to developers.
The HCA inherited eight asset portfolios from the regional development agencies when they were abolished in March 2012. It has vowed to work with local partners to use the assets to unlock development.
Under the latest plan the HCA will be paid back 12 months after sale of the assets with any uplift, up to a £37m limit, kept by the council to reinvest in further infrastructure.
The councils will invest £645m in upgrading five key road schemes, which will increase the value of the sites and increase the viability of development.
A memorandum of understanding is now being prepared ahead of an early December meeting between the parties. The plan is then to establish a board to agree a disposal plan by March 2014.
HCA North West executive director Deborah McLoughlin said: “We have grouped together and asked what the constraints were that stopped us going forward. We have come to an agreement that the councils will front fund infrastructure, and we will bring forward our land and recycle the receipts.”
Around £100m of the funding for the road upgrades will come from the Lancashire Pension Fund, £211m from the councils themselves and £334m from central government and the private sector.
In all it is hoped the scheme could deliver 17,000 homes over the next 10 years.
Last week Estates Gazette revealed the HCA was working with Manchester council to deliver 3,000 private rented sector flats at the former Ancoats textile district (9 November, p33).
chris.berkin@estatesgazette.com
