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‘Housing Accelerator Fund’ launched

Words: Laura Edgar
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The government’s housing accelerator, Homes England, and United Trust Bank have announced a £250 million fund with the aim of supporting small and medium-sized builders with development finance at up to 70 per cent loan to gross development value.

The fund will provide construction loans between £1 million and £10 million.

The partnership between the specialist lender and Homes England seeks to improve access to finance for smaller builders and “drive the continued diversification of the housing market” in the coming years.

Applications will be accepted from today (16 February).

Gordon More, chief investment officer at Homes England, said: “The Housing Accelerator Fund is open for business from today. In line with Homes England’s commitment to support SMEs, it will help smaller builders get on and build now, as well as improve the lending landscape for SMEs by driving competition in the market, improving choice and encouraging innovation.

"United Trust Bank have consistently supported housebuilders of all sizes and are an experienced and capable lender. We’re pleased to be collaborating with them on this long-term partnership and look forward to seeing the fund support the delivery of new homes across the country.”

Noel Meredith, executive director at United Trust Bank, said: “SME housebuilders have a vital role to play in delivering the UK’s new housing needs and UTB has amassed considerable experience helping such businesses to complete thousands of successful developments. 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.”

More information can be found on the United Trust Bank website.

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