1. Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY Custom Build Serviced Plots Loan Fund November 2015

2. What we will talk about today  What is the Custom Build Serviced Plots Loan Fund (CBSP)?  Who is eligible to apply?  What does the fund provide?  A brief overview of the bid assessment process  An example – French Fields (Westward UK)  Continuous Market Engagement (CME) – how it works.

3. What is the Custom Build Serviced Plots Fund?  A £150m Government initiative designed to help address the primary difficulty faced by many custom builders – i.e. securing a suitable building plot for their project.  CBSP fund provides short-term loan finance to bring forward sites of 5 or more ‘shovel ready’ plots for further development.  ‘Shovel ready’ means sites with planning permission, where plots or parcels are laid out and the land is ready for construction.  Loans are for residential projects only.  Completed serviced plots once sold can facilitate either custom build or self-build projects.

4. Who is eligible to apply?  Applicants must be an appropriately constituted body of good standing with the capability to deliver their project  Private sector developers (particularly small and medium-sized) including those carrying out site infrastructure/servicing work and then offering design and build.  Housing associations (registered with and regulated by the HCA)  Community Land Trusts or community groups recognised under the 2011 Localism Act  Public sector bodies are not eligible to apply unless they partner a third party who meet the eligibility requirements

5. Who is eligible to apply (continued)  Proposals for schemes without planning consent may be initially considered where:  land is controlled by the applicant; or  where the site has been designated in an adopted development plan.  However, projects must have outline planning permission (with reserved matters) as a minimum to qualify for loan funding.  And…..result in the construction of new residential custom build.

6. What does the fund provide?  Recoverable loan funding of up to 75% of eligible qualifying costs.  Eligible qualifying expenditure includes:  on-site infrastructure costs relating to the construction of the homes – access roads, footpaths and cycleways  provision of on-site utilities which are provided to the plot  land preparation required to prepare the plot (including remediation)  costs associated with demolition of existing buildings on the site  fencing and landscaping to secure the immediate site boundary (excluding fencing or structural landscaping for individual plots)  professional fees directly associated with works funded through the CBSP fund.  A £3m cap for funding any single project.

7. Bid assessment process  Two-stage assessment process: 1.An initial eligibility assessment leading to shortlisting 2.Due diligence to verify the suitability for funding.  Successful completion of due diligence  formal negotiations to contract terms before a loan is made.  An applicant can also apply for funding from other HCA programmes (for example, Builders Finance Fund) providing:  it is not for the same work  any outstanding HCA loan is repaid ahead of any further funding

8. French Fields - Overview  Westward (UK) Ltd – an SPV with secured services of Kingspan-Potton and Buildstore Ltd.  2 acre site owned freehold in the North-West (local authority is St. Helens), accommodating 4,000sqm derelict commercial buildings.  Contracted with HCA on 27/3/15. Providing 18 remediated and serviced plots for custom build customers. AERIAL VIEWS

9. French Fields - Partner Roles  Westward (UK) Ltd – coordinate provision of serviced plots and provide general self- build advice to customer.  Kingspan-Potton – produced site masterplan, work with customer on individual house designs, manufacture, supply and erect units on site.  Buildstore – coordinates marketing and plot sales, provides financial services to the customer – specialist in self-build mortgages, warranties and insurance.

10. Continuous Market Engagement (CME)  CME began on 30/1/15. Prospectus and supporting information on the Gov.UK website. Submitted bids will be assessed/decisions made on a rolling basis.  Funding is available to 30 March 2020 or until the fund is fully allocated  ‘Long-stop’ date for repayment of loan (with interest) is by 31 March 2025  The fund supports the Government’s forthcoming ‘Right to Build’ requirement on LAs to hold a register of demand for custom build; and to have regard to that demand in carrying out their planning, housing, land disposal and regeneration functions.

11. CME: how it works?  Promoted locally and nationally:  Engagement with with local partners, trade bodies and intermediaries  Engagement with SMEs and other developers  Media briefings  Local support from HCA to support prospective bidders  Bids can be made through the HCA Partner Portal at: https://partners.hca- online.org.uk/ (Note: from 1 April 2015 onwards bids received for the Greater Manchester area will be forwarded to the Greater Manchester Combined Authority).https://partners.hca- online.org.uk/  Further advice and support available via servicedplots@hca.gsi.gov.ukservicedplots@hca.gsi.gov.uk  Bidding guidance available online www.gov.uk/government/publications/custom-build-serviced-plots-loan- fund www.gov.uk/government/publications/custom-build-serviced-plots-loan- fund

12. Any questions?