£1bn in new loans will be paid to help small and medium-sized housebuilders deliver much-needed housing across the UK, housing secretary Robert Jenrick has announced
The £1bn guarantee scheme created by the government will ensure enough credit is available to allow smaller housebuilders to enter the market.
Local builders will be able secure loans from participating banks to help the government deliver its commitment of at least a million new homes in the next five years.
Small housebuilders are vital
Robert Jenrick said: “Small housebuilders are vital to building the homes this country needs but too often struggle to access affordable finance.
“Today I am giving the green light to a scheme that will help to fix this. Supporting £1bn of new loans so that local builders can kickstart building, level up the country and turbocharge the housing sector.”
Housing minister, Esther McVey, added: “When it comes to building houses, we mean business – this fund will give everyday lenders the confidence needed to do deals with smaller builders which get shovels in the ground.
“Today I have given the green light to £1bn in loans to boost local builders, so they can deliver the homes our communities need across England.”
ENABLE Build programme
Reinald de Monchy, managing director of guarantee and wholesale at British Business Bank, said: “The ENABLE Build programme is a great example of using a cross-government approach to tackle an important, complex issue.
“Working in partnership with the Ministry of Housing, Communities and Local Government, the Department for Business, Energy & Industrial Strategy and Homes England to address both access to finance and the UK housing shortage, the ENABLE Build programme will allow us to build on our ENABLE Guarantee’s success in supporting smaller housebuilders that have traditionally struggled to access the funding they need.”
Responding to the announcement, Dave Sheridan, executive chairman at ilke Homes, said: “The announcement of an extra £1bn worth of finance for SME housebuilders is welcome news as if we’re to tackle the UK’s housing crisis head on, increasing volume and diversity of supply is crucial.
“Backing SME housebuilders is a good step in the right direction, and will complement the backing of modern methods of construction which is already promising to speed up housing delivery.”