Construction of the new community of Sherford on the edge of Plymouth involves some of the biggest names in house-building, including Taylor Wimpey, Bovis Homes and Linden Homes. There are plans for 5,500 new homes to be built over the next 15 years.
The development is expected to generate around £1bn in development expenditure to the area and provide an economic boost worth around £2bn.
The HCA loan will be used by a development consortium led by Red Tree to begin a road and utilities improvements to accommodate the early phases of house building.
“The new community of Sherford is an incredibly important project, because it will go a long way towards meeting the significant need for new homes in Devon and Plymouth and provide a major boost for the economy,” said Colin Molton, HCA executive director for the south and southwest. “It is a complex development, which has taken years to bring to this stage. It is fantastic news that investment has been approved which will support the development of the sustainable new community of Sherford. I look forward to seeing work start on the project soon.”
Red Tree partner James Koe added: “The funding is the vital catalyst to the commencement of the development and this is exciting news for Sherford and for the local economy.”
Cllr John Tucker, leader of South Hams District Council, said: “The current economic downturn however has created a great number of challenges in bringing the development forward. We now hope that the government loan to the developers will kick start the scheme and lead to much needed homes in the South Hams and jobs for local people.”