Funding has been granted for a 3,400 home development at Dallington Grange in Northampton as part of a £1bn Government scheme to accelerate 200,000 new house builds across the country.
Today the Communities secretary Eric Pickles published a shortlist of 36 large-scale housing projects in line to receive a share of £850m in long-term loans to get house building started.
They include the Dallington Fields project, being led by developers Persimmon Homes and Barratt Homes, as well as the Overstone Leys development in Daventry for 2,000 homes and a £14m of investment towards phase one of a major 5,500 house build in the east of Kettering.
Mr Pickles said: “This government’s long-term economic plan is getting Britain building again.
“Residential construction is now at its highest level since 2007 and continuing to rise, and 216,000 new homes were given planning permission last year.
“We are supporting locally-led development, and this £1 billion programme will help unlock or accelerate over 200,000 new homes across the country. This is part of our wider package of housing programmes to support home ownership, increase investment in the private rented sector and further increase house building.”
The 134-acre site land at Dallington Grange, near to the Kings Heath estate, is part-owned by Northampton Borough Council and part-owned by the Althorp Estate.
A cabinet paper in March suggested the development, first lodged in 2006, has stalled for eight years because of the financial crisis in 2008.
Northampton Borough Council announced in March that the development would also feature 100 council homes, one of the biggest social housing developments in Northampton for a number of years.
It is not known how much the development will receive from the Government funding package .
The monies will be available between 2015 and 2020 and will come in the form of a long term loan, with interest – ensuring a fair rate of return for taxpayers, Mr Pickles said.
Leader of Northampton Borough Council, Councillor David Mackintosh, (Con, Rectory Farm) said: “Today’s announcement is welcome news as it will help provide funding for the infrastructure needed by the future neighbourhoods and communities of Dallington Grange.
“With any new development a key requirement is that the infrastructure is in place to ensure new residents can access the services they need, and this funding will help the developers provide that, Which will free up the developers to progress their plans to create new neighbourhoods at Dallington Grange.”
Chief secretary to the Treasury, Danny Alexander, said: “I am delighted that we have been able to put this extra £850 million into building more homes for families across the country.
“This forms part of the government’s record investment in housing, which has already helped to get 450,000 new homes built over this Parliament, and brought housebuilding back to its highest level for six years.”