Why Construction Grants Are Booming in 2025

Housing crisis response: Government targeting 300,000 new homes annually

Net zero retrofit: £9.2B allocated for building decarbonization by 2028

Infrastructure investment: £600B pipeline creating grant opportunities

Skills shortage funding: £2.5B for construction training and apprenticeships

Innovation drive: Modern methods of construction receiving 40% grant premiums

Major Housing & Development Grants

Affordable Homes Programme 2021-2028

Total Fund: £11.5B (£145M available quarterly)

Grant per unit: £30,000 - £150,000

Success Rate: 48% for strategic partners

Eligible Developers:

Registered providers (housing associations)
Local authorities
Private developers (through partnerships)
Community land trusts

Grant Rates by Type:

Social rent: Up to £150k per unit
Affordable rent: Up to £100k per unit
Shared ownership: Up to £70k per unit
Rent to Buy: Up to £50k per unit

Insider Tip: Partner with a registered provider to access funding as a private developer. Joint ventures typically split grant 60/40 while you retain development profit.

Brownfield Housing Fund

Total Fund: £75M for site remediation

Grant Range: £10,000 - £40,000 per plot

Coverage: Up to 100% of abnormal costs

Eligible Costs:

Contamination remediation
Site clearance and demolition
Abnormal foundations
Infrastructure and utilities
Flood mitigation works

Success Factors:

Minimum 50% affordable housing scores highest
Town centre locations get 20% bonus
MMC commitment adds 15% to score

Strategy: Stack with Affordable Homes Programme for total grants up to £190k per unit on challenging sites. This can make marginal sites highly profitable.

Social Housing Decarbonisation Fund

Total Fund: £60M per wave (Wave 3 now open)

Grant per property: £10,000 - £25,000

Match funding: 33% required (67% grant)

Eligible Measures:

External wall insulation: Up to £15k
Heat pump installation: Up to £12k
Solar PV and battery: Up to £8k
Window and door upgrades: Up to £5k

Contractor Opportunities:

Framework agreements worth £5-50M
Direct awards for PAS2035 qualified
5-year pipeline visibility

Contractor Tip: Get PAS2035 certification now. Qualified contractors can charge 15-20% premiums and have guaranteed work pipeline through 2030.

Infrastructure & Regeneration Funding

Levelling Up Fund Round 3

Total Allocation: £85M

Project Size: £1M - £20M

Grant Rate: Up to 90%

Priority Projects:

Transport infrastructure
Town centre regeneration
Cultural and heritage assets
Green infrastructure

Contractors can partner with councils

Towns Fund

Remaining Budget: £45M

Per Town: Up to £25M

Grant Coverage: 70-100%

Focus Areas:

Urban regeneration
Skills infrastructure
Digital connectivity
Enterprise infrastructure

101 towns selected - check eligibility

Getting Building Fund

Regional Allocation: £30M

Project Range: £500k - £10M

Decision Time: 6 weeks

Eligible Projects:

Commercial developments
Industrial units
Innovation centers
Green infrastructure

Shovel-ready projects prioritized

Modern Methods Grants

Innovation Fund: £25M

Grant Rate: Up to 50%

Project Size: £100k - £5M

Technology Focus:

Modular construction
3D printing systems
Automated manufacturing
Digital construction

40% productivity gains required

SME Builder & Contractor Support

Help to Build Equity Loan

Fund Size: £150M for SME developers

Loan Amount: Up to £250k per plot

Terms: 5-year interest-free period

Eligibility: Developers building 1-100 units annually

Cashflow Benefit: Reduces working capital requirement by 40%, enabling SMEs to run multiple sites simultaneously.

Skills & Training Construction Grants

Construction Skills Fund

Total Budget: £22M for training providers

Per Trainee Funding: £2,000 - £8,000

Employer Benefits:

Free training for new recruits
Wage subsidies during training (£4k)
Tools and equipment grants (£1.5k)
Mentoring support funding

Priority Skills: Retrofit coordinators, heat pump installers, MMC operatives, BIM technicians

Project Case Study: Triple Grant Success

Midlands Housing Development

Regional developer secured £3.2M across three grants for 85-unit scheme:

Brownfield Fund

£850k remediation

Affordable Homes

£1.8M (40 units)

Getting Building

£550k infrastructure

Result: Transformed unviable site into 22% profit margin project. Grant funding covered 45% of total development cost.

Application Strategy for Construction Firms

Step 1: Establish Grant Readiness

Obtain necessary accreditations (Constructionline, CHAS)
Prepare 3 years of audited accounts
Document past project successes
Develop sustainability credentials
Create partnership agreements template

Step 2: Build Strategic Partnerships

Partner with housing associations for AHP access
Join local authority frameworks
Form JVs with landowners
Engage with LEPs and combined authorities
Connect with Homes England relationship manager

Step 3: Stack Multiple Grants

Never rely on single funding source
Layer infrastructure, housing, and innovation grants
Include skills funding for apprentices
Add energy efficiency grants for retrofit
Claim R&D tax credits alongside grants

Common Mistakes to Avoid

Underestimating timescales: Grant applications take 3-6 months. Factor this into project programs.
Weak financial standing: Funders require evidence of match funding and cashflow to complete projects.
Missing additionality: Must prove project wouldn't happen without grant - never claim it just improves profit.
Ignoring compliance: Grant conditions include social value, local employment, and apprenticeships. Budget for these.

Take Action Today

Ready to Access Construction Funding?

Let Crafty help you navigate construction and infrastructure grants. Our AI understands viability assessments, development appraisals, and can demonstrate how grants transform project economics.

Construction Grant Calendar Q1-Q2 2025

31 January: Social Housing Decarbonisation Wave 3 closes

15 February: Brownfield Housing Fund continuous market engagement

28 February: Affordable Homes Programme Q1 bidding round

15 March: Levelling Up Fund Round 3 expressions of interest

30 April: Getting Building Fund regional allocations

31 May: Modern Methods of Construction demonstrators

Ongoing: Help to Build equity loans (continuous application)