Small and medium builders to receive £1bn boost
The government has set up a £1 billion guarantee scheme to ensure enough credit is available to allow smaller house builders to enter the market.
Millions of pounds in new loans will be paid out to support small and medium-sized firms get building, Housing Secretary Robert Jenrick MP announced.
In a statement to Parliament, the Housing Secretary confirmed the British Business Bank’s ENABLE Build Programme will shortly begin guaranteeing millions in new loans for local, independent construction businesses to deliver new homes.
“Small house builders are vital to building the homes this country needs but too often struggle to access affordable finance,” Mr Jenrick said.
“Today I am giving the green light to a scheme that will help to fix this. Supporting £1 billion of new loans so that local builders can kickstart building, level up the country and turbocharge the housing sector.”
According to the government, local builders will be able to secure loans from participating banks to help the government deliver its commitment of at least a million new homes in the next five years.
Since the scheme opened for applications in May 2019, the government has received interest from specialist and mainstream lenders – including high-street banks – who want to be involved in this innovative scheme to deliver homes.
Following the credit crunch in 2008, figures show that only 1,737 small- to medium-sized builders operate in England, with more needed to help respond to the demand for new homes.