Govt to advise on Greater Manchester brownfield housing funds
The Competition and Market Authority’s Subsidy Advice Unit will compile a report looking into whether the £500m scheme is compliant with national policy, at the combined authority’s request.
Greater Manchester Combined Authority has been distributing brownfield housing funds for years, however, its latest devolution deal gives it greater support for the initiative. The scheme is supported by £135m from the government’s Brownfield Housing Fund and £150m from the Brownfield Infrastructure Land Fund.
The latest edition of the bolstered GMCA Brownfield Housing scheme comes into effect this summer and runs until summer 2029.
It is this latest round that is subject to the SAU’s investigation.
As part of the scheme’s rules, the maximum amount that can be offered by the GMCA is £20m for a project.
This money can go towards purchasing the land, remediating the site, installing utilities, and construction – all of which must support the delivery of new homes or infrastructure necessary for those homes’ delivery.
In previous years, the GMCA has lent as much as £70.8m for individual schemes.
The GMCA has said that the initiative will enable the delivery of 10,000 new homes before its expiry.
SAU was brought on board by request to evaluate the scheme. The government body has 30 days to compile its report, with it set to be published on 2 September.
GMCA’s loans towards developers have raised eyebrows in the past, with Weis Group suing the combined authority over perceived favouritism towards Renaker – which has claimed more than half of the £940m of money invested by the GMCA’s housing investment loans.
Heading off another Weis Group fishing expedition!
By Anonymous
Sorry Julia, but is this grant funding (i.e. none refundable grants for schemes to support viability), or lending (where loans are paid back to GMCA with interest)? Thanks, John
By John W
Hi John – I’ve reached out to GMCA for clarification on this point and will let you know when I hear back.
By Julia Hatmaker
Hi John – apologies for the delay, I’ve just heard back from GMCA. While the funding is primarily given as grants, occasionally it gives the money as loans or other forms of subsidy such as equity investment. They also stressed that SAU’s look at the scheme is a routine process and not a probe.
By Julia Hatmaker
Seems Weis might make Manchester right if he keeps on fishing..
By GMCA fan
GMCA fan – you seem to imply that Manchester is doing something wrong.
What exactly? and how will the Weiss Group fix anything?
By Anonymous