New £250 Million Loan Fund For SME Builders

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New £250 Million Loan Fund For SME Builders

New £250 Million Loan Fund For SME Builders

Homes England has announced that a new £250 million fund will be made available to help small to medium-sized enterprises (SMEs) apply for construction loans of up to £10 million, with the aim being to increase the finance options so as to diversify England’s housing market.

According to Inside Housing, the housing accelerator fund will be delivered by United Trust Bank, providing loans between £1 million and £10 million, at a loan to gross development value of up to 70 per cent.

Chief investment officer at Homes England Gordon More explained that it will help smaller firms start building now, while simultaneously improving the lending landscape and driving competition in the market which will, in turn, improve choice and encourage innovation.

Noel Meredith, executive director of property development at United Trust Bank, made further comments, saying: “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.”

Homes England also recently announced plans to offer SME builders even more support by changing the land disposal process, thereby making it easier for smaller developers to secure public land.

And six months ago, it also announced a separate £25 million fund, where builders are able to apply for loans of between £400,000 and £2.5 million at up to 80 per cent loan to cost.

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