£3 billion available for housebuilding schemes

Billions of pounds in guarantees for housebuilders is now available, as part of a new support package confirmed by the Housing Minister.

An additional £3 billion in housing guarantees was initially announced in the Budget, with the guarantees available to help builders apply for more accessible loans from banks and lenders.

The government guarantees reduce the risk for lenders and encourage them to increase the supply of credit for housebuilders.

It is hoped the intervention will deliver thousands of new homes, help more families onto the housing ladder, boost economic growth and create jobs.

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 (FMB), 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.

“Today’s Government 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.”