£165m Fund Launched to Unlock Housing and Growth Through Road Investment

Thousands of new homes and jobs are set to be delivered across England following the launch of a new £165 million government fund aimed at unlocking stalled developments by improving transport infrastructure.

The Growth and Housing Accelerator Fund will focus on sites where progress has been delayed due to a lack of funding for essential road links. By addressing these infrastructure gaps, the initiative is designed to enable construction to begin on housing and employment sites that have remained dormant for years.

The fund forms part of the government’s wider Road Investment Strategy 3 (RIS3), which will see more than £27 billion invested in England’s motorways and major A-roads between 2026 and 2031. The strategy aims not only to maintain and upgrade the existing network but also to ensure roads actively support economic growth and new development.

Transport Secretary Heidi Alexander said the fund represents a clear commitment to removing barriers that have held back housing and job creation.

“Too many developments have been unable to progress because the infrastructure simply wasn’t in place,” she said. “This funding will help unlock those sites, delivering the transport links needed to get building underway and create opportunities for communities.”

The initiative is closely aligned with the government’s ambition to deliver 1.5 million new homes during the current Parliament, alongside improving connectivity and supporting local economies.

Housing Secretary Steve Reed said the fund would help accelerate construction and bring forward developments in areas where demand is high but progress has been limited.

“This is about turning plans into reality,” he said. “By investing in the infrastructure that supports housing and jobs, we can create communities where people can live, work and thrive.”

The fund will be targeted at locations on or near major roads, ensuring that new developments benefit from strong transport connections. National Highways will work with local authorities to identify suitable sites, with applications expected to open in the coming weeks. A rolling programme of approved schemes is due to be announced from late 2026.

Elliot Shaw, Executive Director at National Highways, emphasised the importance of reliable road networks in supporting both housing and economic growth.

“Transport infrastructure plays a crucial role in shaping where people live and where businesses invest,” he said. “This fund will help deliver the connections needed to unlock new homes and employment opportunities.”

Alongside the new fund, RIS3 includes a record £8.4 billion investment in renewing and resurfacing over 9,000 kilometres of roads, addressing long-standing maintenance backlogs. With around two-thirds of structures on the network now more than 45 years old, the programme will also prioritise upgrades to bridges, viaducts and ageing road surfaces.

Overall, the five-year investment plan is expected to support around 50,000 jobs nationwide while improving the resilience and performance of England’s strategic road network.

The launch of the Growth and Housing Accelerator Fund marks a significant step in aligning transport investment with housing delivery, aiming to unlock development, boost regional economies and support long-term growth.