Town chosen for homes initiative

The Public Land Initiative involves the Government providing new land for houses to be built on and also removing the upfront costs and risks to contractors.

Rather than paying for the land and then also paying for it to be cleared, the scheme means that the contractor will only have to pay for the land once the finished houses are sold.

Housing Minister John Healey, MP for Wentworth, described the plans as a drive to make better use of Government-owned land to build more homes, to lower costs and to increase competition in housebuilding.

He also said that, subject to planning permission, the first three sites – in Doncaster, Milton Keynes and Newcastle – will deliver nearly 500 new homes.

The Public Land Initiative is expected to provide up to 1,250 homes overall.

Mr Healey said: "The last year has been tough for everyone. Every business, household and individual has had to respond to the pressures and to rework the plans and budgets we had before the recession.

"But we have proved that, with the power of public investment and Government action, we can get through. We have to innovate and test new ways of funding and building the homes we need."

Those new homes earmarked for Doncaster are set to be built in Bentley. A total of 178 houses are planned, of which 47 will be affordable, and work is expected to start this summer.

Two of the the first three sites are owned by the Homes and Communities Agency (HCA) while the third, in Newcastle, is owned jointly by the Regional Development Agency One North East, Newcastle City Council, and local development company 1NG.

Mr Healey also said he wanted other public bodies to follow suit and identify land they have available for housebuilding. Latest estimates suggest there is enough public sector-owned land in England to build nearly 300,000 homes, including 100,000 on council land and others on old NHS, transport, military and school sites.

The Minister added: "This is a drive to make better use of Government-owned land to build new homes. Where the HCA and Newcastle are leading I expect other public bodies to follow.

"And I am now looking to new companies to bring a new competitive edge to the industry. We are looking to test this new business model on the first three sites, with the first builders on site over the coming months."

It is anticipated that the scheme will create 1,700 jobs and apprenticeships nationwide. Yorkshire and Humber Regional Minister, MP Rosie Winterton, said she was "delighted" that the region is "at the forefront of innovative ways of using public land to deliver the new housing the nation needs".

She added: "The Government's Public Land Initiative will deliver high-quality affordable housing in Doncaster on land owned by the HCA, and will also support the construction industry during these challenging economic times.

"I hope other public bodies in the region will learn from this initiative and look at how they can make better use of their land to build much-needed affordable housing across the region and, importantly, help support the creation of local jobs and apprenticeships."

David Curtis, Yorkshire and Humber regional director of the HCA, also welcomed the scheme.

He said: "This former coalfields site in Yorkshire and the Humber will provide much-needed new affordable homes that will be built to high environmental and quality standards through the HCA's Public Land Initiative."