Smaller house builders offered £1bn fund
The Government organisation Homes England has teamed up with Barclays bank to offer a total fund of £1bn to small house builders to encourage further building within the sector. It is hoped that the initiative will help the government to meet housing targets for 2020.
Low-cost loans will be available to house builders that can show they have the necessary skills and track record. Housebuilders can apply for between £5m and £100m and can be used to cover up to 80% of costs or 70% of the overall value of the project. Barclays is offering £875m, while Homes England is supplying £125m.
The fund is designed to support small and medium-sized builders that can provide homes for rent and sale that support innovation and regeneration.
John McFarlance, the Barclays Chairman has pointed out that there is a vital need for more quality homes and the fund is about helping to provide exactly that by showing how firms in the business of house building can find the right finance to meet the need.
This is a view shared by the Housing Secretary Rt Hon James Brokenshire who states that his priority as a housing secretary is to get Britain building and this new fund is an important step in giving smaller builders the access to the finance they need to get developments off the ground. It will also promote innovation and design approaches that are new across the housing market.