£14.67m has been allocated to social landlords to help them buy land to build more homes across Wales.
The money has been made available through the Land for Housing scheme, which allows Registered Social Landlords to borrow money to buy land to build on. As the scheme provides loans, the money is recycled as loans are repaid.
17 schemes will be supported in this second round of funding for 2018-19, bringing the total invested this financial year to more than £32m, including £4.2m which has been repaid and reinvested. Since the start of the scheme in 2015, £52m has been invested, resulting in delivery of more than 4,100 homes across Wales. 84% of these are affordable homes.
The Minister made the announcement while visiting a Taff Housing Association development at the former FA Jones DIY store on Penarth Road in Cardiff which is due to be completed in July. It will provide 19 one and two bedroom flats, including two that are wheelchair accessible and a retail unit. Construction commenced in May 2017 and is due to hand over in July 2019.
The project received a Land for Housing loan of £504,000 to enable them to purchase the site in May 2017. That loan has now been repaid and recycled into the funding for this financial year.
Housing and Local Government Minister Julie James said:
Housing is about so much more than bricks and mortar. It’s vital that everyone in Wales has access to safe, affordable housing so they can achieve their full potential.
We have committed to creating 20,000 affordable homes during the course of this government, and the Land for Housing Scheme is just one of ways we are investing in achieving this.
As this is a loan scheme, when the money is repaid, it’s reinvested in new projects and therefore delivers far more value than the £52m we have invested to date. It is an excellent example of how we are working with registered social landlords to build homes and improve the lives of people in Wales.
Elaine Ballard, Chief Executive of Taff Housing Association said:
This funding has helped us bring back to life an important site on Penarth Road, which is a gateway to Cardiff. There is always demand in these heartland areas, and future tenants will benefit from the strong community networks Taff is part of. In turn, these new residents will have the opportunity to get involved and strengthen this diverse and vibrant neighbourhood.
The 17 approved schemes are in Cardiff; Ceredigion; Denbighshire; Flintshire; Gwynedd; Pembrokeshire; Powys; Rhondda Cynon Taf; Swansea and Wrexham.