Loan funding of at least £624m will be available for house builders, including SMEs, to improve the infrastructure needed to “kick-start new housing projects”, with a particular focus on transforming “unsightly and derelict brownfield sites.”

The funding was announced by the Department for Levelling Up, Housing and Communities.

It continues the trend of government attention on brownfield land. In the recent Budget, the chancellor announced that £1.8bn would be devoted to developing on brownfield.

The department hopes the loan funding will help deliver up to 116,000 new homes to support people on to the housing ladder, and will boost smaller building firms and create thousands of new jobs.

Housing Minister, Christopher Pincher, said: “We are building the right homes in the right places so more young people and families can get on the housing ladder.

“Improving transport links, building schools and health facilities are key to unlocking new homes and creating vibrant places where communities can thrive.

“This money will build on our commitment to bring derelict and abandoned sites back to life, regenerating towns and cities as we level up across the country.”

Chief Executive of Homes England Peter Denton said: “This new infrastructure funding will be a powerful catalyst for creating new homes, places and communities.

“It gives us the resources we need to back more developments like Houlton in Rugby, where a £35 million funding injection has helped to create new primary and secondary schools, a link road to Rugby town centre, and wider infrastructure needed to build a community of up to 6,200 homes.”

The funding is part of the £2.2bn loan financing made available at Spending Review 2020 to support infrastructure and drive housing supply.

Loans will be administered by Homes England through the Home Building Fund – an existing housing supply programme that makes loan finance available to developers.