A financial support package worth up to £700 million for SME housebuilders will be up for grabs through the expansion of a government programme to boost economic growth and build tens of thousands of new homes.
The existing Home Building Fund for SMEs is being extended beyond its original end date of March next year to secure millions of pounds worth of loans and investments for small housebuilding firms who would otherwise be unable to access lending elsewhere.
Providing a range of financial support, including direct loans and lending partnerships, the Fund is increasing the amount of cash available for smaller housebuilders so they can play a crucial role in the government’s Plan for Change to build 1.5 million new homes over five years. This will get more families onto the property ladder and create jobs in the areas most in need.
The extension will support the delivery of around 12,000 additional homes – on top of the 42,000 homes the Fund is already on track to deliver.
Housebuilders struggling to access the credit they need continues to be a key constraint in driving growth across the sector and today’s intervention will help remove these barriers to encourage more housebuilding and grow the economy.
Chief Executive of Homes England, Peter Denton said: “The Fund is playing a vital part in England’s housing and regeneration story. It is at the heart of unlocking opportunities and helping the market to thrive and diversify, which is essential to boost the creation of new, high-quality, sustainable homes that people want and need.
“The Fund’s extension brings certainty to the sector and will undoubtedly open doors for SMEs, who I would encourage to reach out to us, as part of a collective mission to ensure everyone in the country has a permanent place to live and thrive.”
