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Housing Gap Funding
Housing Gap Funding is a European-Commission-approved investment tool available to the public sector to enable it to support regeneration and housing supply. The approval enables Local Authorities, Regional Development Agencies, the Housing Corporation and English Partnerships to give grants to private developers and housing associations for housing-led regeneration and development whilst remaining compliant with European State Aid rules.
Housing Gap Funding is an important tool in the Government’s Sustainable Communities Plan, offering the opportunity for private-sector solutions to housing-led regeneration sites and housing supply. It can be used to tackle problems of housing decline and abandonment as well as subsidising the cost of providing affordable housing in areas of housing growth and high demand.
Even though the European Commission allows for the use of Housing Gap Funding anywhere in England, it probably will not be available anywhere to any housing development. It is a tool that will be made available strategically and therefore selectively in certain parts of the country, in specific areas and against clear criteria set out by the awarding body.
The precise focus for the use of the scheme will be decided by those agencies wishing to use it. There is no new money available from Government and there is no national fund.
European Commission approvals
European Commission 2002-06 approval (N239/2002) - PDF (24 KB)
European Commission 2006-13 approval (N293/2006) - PDF (132 KB)
Use of Housing Gap Funding by English Partnerships
English Partnerships uses Housing Gap Funding selectively to support strategic interventions. Our regional offices will be able to provide more information on local strategic priorities.
Tools available to all public sector bodies using Housing Gap Funding
The Office of the Deputy Prime Minister asked English Partnerships to develop an appraisal pack for regeneration and other public bodies wishing to use Housing Gap Funding.
A full consultation pack and "beta" spreadsheet calculation tool were launched in 2003. The revised pack, taking on board comments from the consultation, was released in February 2005.
The pack includes an appraisal guide, beta version 2 model cashflow, guide to the model, a legal agreement template and a sample application form.
1. Appraisal Guide - (PDF, 711 KB)
2. Model User Guide for Excel users - (PDF, 282 KB)
3. Beta version 4 model, published October 2004 - (Excel spreadsheet, 668 KB)
4. Legal Agreement template for English Partnerships & RDAs - (Word document, 168 KB)
5. Legal Agreement template for Local Authorities - (PDF, 228 KB)
This is a model funding agreement for Local Authorities. It is a framework for Local Authorities to use for reference. However, Local Authorities should take legal advice specific to their project, and not use this without legal consultation.
6. Draft pre-application form - (PDF, 340 KB), application form - (PDF, 733 KB) , grant claim form - (PDF, 454 KB)
