A £1.7m kickstart for Millbay flats scheme
BUILDING work on stalled Millbay flats can get under way again thanks to a £1.7million Government handout.
Flats at the first phase of the Phoenix Quay project failed to sell out at the beginning of this year, with bosses blaming the tough economic climate.
The development can now move to its second phase thanks to £1,679,278 from the Government's Kickstart scheme, which will fund another 64 homes.
But the company will not get immediate Government help for two projects in Devonport.
The Millbay scheme, which is being built by Midas Homes, a Galliford Try subsidiary, is one of dozens that will benefit from the £50million Kickstart scheme.
It will help developers to build more than 2,000 homes on 27 sites around the country where building work was stalled by the recession.
The grant comes hard on the heels of a £4.5million cash injection from the Homes and Communities Agency to push forward the £350million waterfront redevelopment at Millbay.
Galliford Try is also getting £279,315 for 50 homes at Liskerrett Vale in Liskeard.
The development as whole is for 154 dwellings including a range of one and two-bed apartments and two, three and four-bedroom houses.
Midas Homes started construction on site in January 2008, but the current phase had stalled.
Kickstart funding will enable 50 homes to be delivered by March 2011.
Kickstart funding is only being used to make projects viable that have been mothballed in the recession, and is only being provided where developers cannot get support from other sources.
The announcement by housing minister John Healey brings Government spending on house-building since June up to the £1billion mark.
A big chunk of the cash injection is aimed at tackling the shortage of affordable housing, as well as creating jobs and apprenticeships in the construction industry, which has been hit hard by the recession.
Mr Healey promised that the pace of investment would continue, with more cash going to councils, housing associations and developers over the coming months.
"We promised more investment to build more homes and have put our money where our mouth is," he said.
Two Galliford Try projects based in Devonport were also on the shortlist of 25 agencies in the South West eligible for a share of the Government funding.
Stephen Teagle, managing director of group affordable housing and regeneration for Galliford Try, said: "We're naturally keen to restart work as soon as possible on sites that have been mothballed."
Colin Molton, regional director for the Homes and Communities Agency in the South West, said: "This is a welcome initiative to help the construction industry keep building homes people can afford.
"Seven bids in the region were successful in securing more than £5million in this round of grants, and with further bids still to be considered I'm sure this will increase."
Comment – Page 10
£10m Millfields Plan – Page 13
7 Comments
by Impoverished Taxpayer, Counting the Cost
Thursday, October 15 2009, 7:34PM
“So here's a handout to property developers and speculators that were major players in the unsustainable property price bubble that's help shaft the British economy?
Good eh?
We can save £20M by not allowing TA soldiers to practice before arriving in Helmand but we can give handouts to those that helped screw the finances of this country?”
by Near the area that will one day be one of the, worlds most vibrant areas
Thursday, October 15 2009, 6:04PM
“Dan
Surely you have got it wrong!
According to the Estate Agents "Phoenix Quay is a superb development of new homes. Phoenix Quay will create a delightful community in the heart of what is destined to be one of the worlds most vibrant waterfront districts."
No mention of the red light district, proximity to Union Street or Stonehouse!
Hey Ho, who do we believe?”
by d, homeless
Thursday, October 15 2009, 5:52PM
“affordable until the management charges are taken into account. No wonder anybody wants to live in these new developments.”
by Gary, Plymouth
Thursday, October 15 2009, 4:11PM
“Luke, the goverment can afford to give out £50m because they've already had it through taxation!
Simples.”
by luke, plymouth
Thursday, October 15 2009, 3:28PM
“i don't quite understand, why/how can the government keep giving big business money because they're not doing very well? its doesn't sound very much like free market capitalism to me ...
mussolini, who knew a thing or two about facism, said 'Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power'
billions have being given to banks, and by the evidence above, to other big corporations, and all three of the main parties are talking about cuts to public services!
this has got to be the biggest heist in history!”
by Impoverished Taxpayer, Brown's Taxpayer Bankrolled Britain
Thursday, October 15 2009, 3:23PM
“Agreed Brian, why are the government intent of continuing the great property price bubble con?
Who benefits from unrealitically high property prices.
Privatising profits and nationalising losses.
The whole UK economy is based on a lie.
Is it any wonder the poverty gap has widened under Big Business loving Labour?
Why work if the taxpayer can just bail you out?
These businesses are little different from dole spongers and those addicted to benefits.”
by brian, bristol
Thursday, October 15 2009, 2:46PM
“More taxpayers money to rig the market.
The reason these flats did not sell out is simple. Their pricing was not affordable.
The government is determined to keep housing as expensive as possible, pricing out first time buyers as a secondary effect.
Dear property is bad for an economy as so much of peoples earnings get soaked up by the interest payments.”