Government Announces £165 Million Fund to Unlock Housing Sites

A new £165 million fund aimed at unlocking stalled housing and employment sites across England has been announced by the Government, with a focus on delivering the road infrastructure needed to get developments moving.

The Growth and Housing Accelerator Fund is designed to support sites where progress has been delayed due to funding gaps, particularly in areas that have historically struggled to secure the investment required.

What the fund will do

The funding will be used to deliver transport improvements, particularly around motorways and major A-roads, helping developers move forward with projects that have been on hold.

It forms part of the Government’s wider Road Investment Strategy 3, which will see more than £27 billion invested in England’s motorways and major A-roads between 2026 and 2031.

The aim is to remove infrastructure barriers that have prevented new homes, jobs and investment from progressing.

Secretary of State Heidi Alexander said:

“Too many housing and employment opportunities have stalled for years, held back by the infrastructure that wasn’t there to support them.

“This fund will pave the way for developments that have sat idle for too long, funding the transport links that stalled sites need to get moving and generating new jobs and opportunities for communities that deserve them.

“It is a deliberate choice and a signal that this Government is serious about removing the barriers to growth.”

Focus on housing and jobs

The Government says the fund will support its plan to deliver 1.5 million new homes across England during this Parliament, while also creating new employment opportunities.

Housing Secretary Steve Reed said:

“For many people, the dream of a decent home, close to work, and with good connections to their community, has been out of reach.

“This government is firing on all cylinders to get spades in the ground faster so we can build new homes, bolster our transport links and create jobs in the places most in need.

“This is exactly the kind of targeted, practical action that will help us reach 1.5 million new homes and create thriving communities where people can put down roots.”

How it will work

National Highways will invite local authorities in the coming weeks to register developments for consideration. A rolling programme of funded schemes is expected to be published from the end of the 2026/27 period.

The focus will be on sites located on or near major roads, ensuring improved access and connectivity for future residents and businesses.

Elliot Shaw from National Highways said:

“Reliable roads are crucial to housing developments. They shape where people want to live, where businesses want to invest, and where communities can thrive.

“This fund will help unlock the transport links needed for new homes and jobs and help the government achieve its ambitions on economic growth.”

Wider road investment

The fund sits within a much larger investment plan that includes £8.4 billion to renew and resurface more than 9,000 kilometres of motorway and major A-road lanes.

With around two thirds of structures on the network now over 45 years old, the investment will also focus on bridges, viaducts and ageing road surfaces.

Overall, the Road Investment Strategy 3 programme is expected to support around 50,000 jobs across England over the five-year period.

The Government says the combined investment will help deliver new homes, create jobs and support long-term economic growth in communities across the country.