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Partnership seeks to help small builders

Words: Laura Edgar
Loan funding / iStock-878953966

Lloyds Banking Group and Homes England have announced that they will invest an additional £300 million commitment to SME and regional housebuilders in the UK.

The Housing Growth Partnership II aims to bridge the homebuilder funding gap so housebuilders can “build more homes across the UK and grow their businesses”.

This additional funding should support a wider range of housing tenures including build-to-rent, regeneration and retirement living units, building on the first Housing Growth Partnership fund announced in 2016. Lloyds Banking Group and Homes England said this new money would help them to achieve their target of supporting the development of 10,000 new homes by 2025.

The partnership also plans to prioritise projects with a focus on sustainability, using modern methods of construction and other evolutionary building methods.

Housing minister Christopher Pincher said: “It is a top priority of this government to increase housing supply so hard-working people can be helped into home ownership.

“A thriving SME sector is crucial to our housebuilding targets and ambitions. This significant amount of funding will help smaller and regional housebuilders by providing them with the financial support necessary to deliver much-needed new homes.”

The partnership is introducing a Regional Growth Initiative, which will see it commit “a higher level of dedicated equity support” to SME housebuilders over a defined period so they can invest in their businesses and target larger and more strategic sites.

The first five regional partnerships with Genesis Homes, Durkan Homes, Stonewood Partnerships, Briar Homes and Cruden Homes are in place across four different regions of the UK .

Vic Hepburn, CEO of Housing Growth Partnership, said: “We are pleased to be building on the success of the Housing Growth Partnership by extending the range of support we can provide to the UK housebuilding market. This includes our new multi-tenure approach, which will provide more flexibility for housebuilders and more choice for homebuyers.

“The introduction of the Regional Growth Initiative will also allow the Housing Growth Partnership to support the most ambitious housebuilders in a more substantial way with additional financial and strategic support.”

Harry Swales, chief investment officer at Homes England, added: “By injecting this additional investment and harnessing Lloyds Banking Group’s commercial skills we’re able to diversify the market, support increasing numbers of builders and provide the homes the country needs.”

Image credit | iStock