A seven year partnership between Homes England and Invest & Fund aims to get SME developers building again.
Homes England will make loans of between £400,000 and £2.5m available to small builders through development finance lending platform, Invest & Fund.
Applications opened with Invest & Fund on 9th September. Funding is available for projects of two homes and up, with up to 80 per cent loan to cost.
Homes England chief investment officer Gordon More said:
“We are particularly pleased to be working with a specialist finance provider, recognising the crucial role that the non-bank lending market continues to play in supporting smaller builders in these challenging times.”
Earlier this month we explored opportunities for SME builders to secure work off the back of the government’s investment in the construction industry. However, we found that issues with the Home Building Fund, and its five build minimum requirement, meant that SME developers struggled to access the finance.
With the new funding being made available for two build projects, microbuilders are now better positioned to take advantage of changes to the planning system.
Housing minister Christopher Pincher said:
“Building the homes the country needs is key to our economic recovery and is a top priority for this government. We are determined to support as many as possible within the housebuilding industry – in particular, smaller builders – to get Britain building.”
Issues with the Home Building Fund meant that the SME developers it was designed to support struggled to access the service. It’s hoped that this new partnership will succeed in helping small firms start build build building again.