Millions of pounds in new loans will be paid out to support small and medium-sized firms to allow smaller housebuilders to enter the market.
In an announcement 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.
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.
Housing Secretary Rt Hon Robert Jenrick MP 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 Rt Hon Esther McVey MP 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.”
Reinald de Monchy, Managing Director, Guarantee and Wholesale, 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.”