William Eichler 16 February 2021

SME builders given £250m boost to diversify housing market

SME builders given £250m boost to diversify housing market image

Small and medium-sized builders are now able to access construction loans of between £1m and £10m from a new fund, the Government’s housing delivery agency has announced.

Homes England has joined with United Trust Bank (UTB), an established specialist lender, to offer a £250m fund to support small and medium enterprise (SME) builders with development finance at up to 70% Loan to Gross Development Value.

The Housing Accelerator Fund aims at improving access to finance offered to smaller builders and driving the diversification of the housing market.

‘In line with Homes England’s commitment to support SMEs, it will help smaller builders get on and build now, as well as improve the lending landscape for SMEs by driving competition in the market, improving choice and encouraging innovation,’ said Gordon More, chief investment officer, Homes England.

‘United Trust Bank have consistently supported housebuilders of all sizes and are an experienced and capable lender, we’re pleased to be collaborating with them on this long-term partnership and look forward to seeing the fund support the delivery of new homes across the country.’

The fund opened yesterday for applications and prospective borrowers should contact UTB.

Noel Meredith, executive director, UTB commented: ‘SME housebuilders have a vital role to play in delivering the UK’s new housing needs and UTB has amassed considerable experience helping such businesses to complete thousands of successful developments.

‘This is an exciting new partnership with Homes England which will make a real difference to both long established and newly formed development companies requiring competitive funding and the long-term support of a knowledgeable and experienced specialist lender.

‘This alliance will help to reinvigorate and increase diversity in the SME housebuilding sector, and boost housing supply in areas under the greatest affordability pressures.’

Commenting on the announcement, housing minister Christopher Pincher said: ‘It is a top priority for this Government to build the homes this country needs and it is vital for our economic recovery that we support as many as possible within the house-building industry to deliver these homes.

‘I welcome the announcement of the alliance between Homes England and United Trust Bank – this is win-win. It will not only support our commitment to build more homes, but also give smaller developers easier access to finance.’

SIGN UP
For your free daily news bulletin
Highways jobs

Residential and Edge of Care Worker - Dovedale Children’s Home

North Yorkshire County Council
£24,982 - £27,741 per annum
We are looking for a Residential and Edge of Care Hub worker to work within the No Wrong Door Hub in Harrogate. Harrogate, North Yorkshire
Recuriter: North Yorkshire County Council

Head of Commissioning and Partnerships

Government of Jersey
£76,299 - £86,279 per annum
Jersey is on an exciting journey towards implementing a new model of care Jersey (GB) (JE)
Recuriter: Government of Jersey

SEND Inclusion Partner

Essex County Council
£37748 - £44410 per annum
SEND Inclusion Partner Permanent, Part Time £37,748 to £44,410 per annum (FTE) Location
Recuriter: Essex County Council

Head of Economic Growth, Investments and Implementation

Copeland Borough Council
£53,241 - £56,500
We have an exciting opportunity at Copeland Borough Council. Cumbria
Recuriter: Copeland Borough Council

Exams Officer

Essex County Council
Up to £23062 per annum
Exams Officer Permanent, Part Time Up to £23,062 per annum Location
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue