The Ministry of Housing Communities and Local Government has partnered with Barclays Bank to make £1 billion of funding available for small and medium-sized house builders.
The aim is to encourage more house building from smaller set ups after it was announced that two thirds of homes are built by just 10 companies. It is hoped the fund will level the playing field for smaller entities in an effort to deliver more new homes, social housing and retirement homes.
Barclays Bank have committed £875 million to the new Housing Delivery Fund alongside the £125 million from the recently established Homes England, a non-departmental public body which funds housing projects in England.
Eligible companies will be able to apply for loans of between £5 million and £100 million to fund their projects at a loan-to-value ratio of up to 70%.
Further details of the loan were not revealed, but Barclays described it as ‘competitively priced’.
James Brokenshire, the housing secretary, said: “This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”
The announcement of the scheme fits with government’s long term strategic aim to build 300,000 new houses per year, and signals the government’s frustration with the pace of housebuilding from larger firms who are failing to take an innovative approach.
Article Published: 13th September 2018