Housing developers will be given loans so they can deliver thousands of school places up front, so they are ready for communities before new properties are finished. A link to the DfE press release can be found here.
To meet the rising demand for more places at good schools, and help families get on the property ladder, the Education Secretary Gavin Williamson has today (Thursday 10 October) said up to £20 million per school would be made available to builders.
It means new school places are financed and delivered up-front – rather than builders having to wait for new homes to be built and sold before having the money to build the development. The loan will be charged at interest, and repayable once new homes are sold.
The new loans build on the Department’s guidance published earlier this year which aims to support local authorities to secure contributions from developers to fund school places that their new housing developments create, outlining how local authorities can negotiate the funding and land required from developers for new schools and school expansions.
It also follows updated Planning Practice Guidance which ensures that funding for schools is properly considered when housing developments are planned.