Sources of funding include Section 106 Agreements whereby local authorities place stipulations on developers to make financial contributions to minimise any negative impact, create infrastructure, or make improvements necessary to sustain the development. Examples include the creation of play space, car clubs and environmental enhancements.

However, the main source of funding for developing home zones in London is through local authority applications to Transport for London's (TfL) Streets for People programme. The Streets for People programme aims to introduce a package of measures to reduce vehicle dominance, encourage more sustainable forms of transport such as walking and cycling, increase opportunities for local people to use streets as social spaces, and improve personal security.  It is not specifically intended to fund home zones, but home zones schemes tend to meet these criteria.

Streets for People application process

Local authorities can apply to the Streets for People programme at any time. There are three stages to the application:

Step 1: An outline submission is made by the local authority which demonstrates the need for the scheme, provides outline costs and the scheme location. TfL makes an annual announcement in November/December to inform local authorities whose bids have been prioritised to move to Step 2 in the following year.

Step 2: TfL provides funds for the proposal to be worked into a comprehensive bid, including full cost breakdown, risk assessment and detailed design. No construction takes place at this stage (except perhaps for site investigation). The remaining applications are not rejected but are held and assessed on an annual basis for prioritisation to move to Step 2. Again, announcements for successful Step 2 submissions are made in November/December. Once a scheme is approved at Step 2 it moves to Step 3.

Step 3:  TfL releases funding for the scheme to be implemented.