Barclays/Homes England launch £1bn SME house builders fund

By Paul Norman - Wednesday, September 12, 2018 13:12

Homes England and Barclays Bank have launched a £1bn fund that will lend to small to medium sized house builders.

Barclays will provide £875m while Homes England, the government agency formerly known as the Homes & Communities Agency, will provide the remainder.

Britain’s government aims to increase annual home-building to 300,000 from 217,000 last year, at a time when buying a home is unaffordable for many young Britons, especially in London and southern England.

The financing aims to reignite construction by small and medium-sized builders, who have fallen away from the market place since the financial crisis.

Housing minister James Brokenshire said: “This new fund ... is a further important step by giving smaller builders access to the finance they need to get housing developments off the ground.”

Loans will range from £5m to £100m, and will cover up to 80 percent of costs or 70 percent of the value of the project, Barclays said.

Projects can include houses for purchase as well as social housing, privately rented housing and retirement homes.

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