A new £3bn support package for housebuilders has been launched by the government to help builders apply for more accessible loans, reducing the risk for lenders and encouraging them to increase the supply of credit for housebuilders.
It’s hoped that housands of new homes will be delivered across the country as a result, supporting the ambition to build 1.5 million homes over the next five years.
This includes doubling the ENABLE Build scheme to £2 billion so smaller housebuilders and firms can support the delivery of over 10,000 new homes, including more student accommodation and specialised housing for older people, in areas most in need.
Build-to-Rent developers will also see the Private Rented Sector Guarantee Scheme reopen at the end of the year, with nearly £2 billion available to ramp up housebuilding. A broader variety of projects will be eligible to access additional lending, so more housing projects can be completed without unnecessary delays.
Housing and Planning Minister, Matthew Pennycook said: “SME housebuilders and Build to Rent operators have a crucial role to play in delivering the government’s target of 1.5 million new homes in this parliament.
“The significant additional support provided by our housing guarantee schemes will enable them to access low-cost loans and support the building of thousands of new homes across the country”.
Brian Berry, Chief Executive of the Federation of Master Builders, said: “SME house builders have a crucial role to play in helping to deliver the Government’s ambitious target to build 1.5 million new homes over the next five years. In recent years, small house builders have faced a particularly difficult set of financial challenges. Diversification of the UK’s housing market is essential to deliver the number of homes needed.
“The Government’s announcement providing greater support for small housebuilders is welcome news. For the Government’s plans to succeed, it will be crucial that this lending is available for those small house builders who need it most and can build the homes this country needs.”
