A seven-year partnership between Homes England and Invest & Fund aims to get SME developers back into building.
England at home will provide loans of between £400,000 and £2.5m to small builders through its development finance lending platform Invest & Fund.
Applications are opened using Investments and funds at 9thousand September Financing is available for projects of two homes or more with up to 80 percent loan-to-value.
Homes England Chief Investment Officer Gordon More said:
“We are particularly pleased to be partnering with a specialist finance provider, recognizing the critical role that the non-bank lending market continues to play in supporting small builders in these challenging times.”
Earlier this month we explored opportunities for SME builders to provide employment through public investment in the construction industry. However, we found that problems with the Housing Fund and the minimum five-build requirement meant that SME developers were struggling to access finance.
With new funding available for two building projects, micro-builders are now better placed 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 in the housebuilding industry – in particular smaller builders – to start building in Britain.”
Problems with the Home Building Fund meant that the SME developers it was supposed to support struggled to access the service. The hope is that this new partnership will help small businesses start building and building again.