£3 billion added to housing guarantee programmes for housebuilders

The government has additional £3 billion in housing guarantees to existing support schemes for housebuilders and make credit facilities more accessible.

The government guarantees will reduce risk for lenders and encourage an increase the availability of loans for housebuilders and other finance to increase the rate new homes are delivered.

Originally set out in October’s Budget, the Housing Minister has today (28th November) confirmed the package of support available.

Housing and Planning Minister, Matthew Pennycook said: 

“SME housebuilders and Build to Rent operators have a crucial role to play in delivering the government’s target of 1.5 million new homes in this parliament.

“The significant additional support provided by our housing guarantee schemes will enable them to access low-cost loans and support the building of thousands of new homes across the country”.

Support includes doubling the ENABLE Build scheme to £2 billion for smaller housebuilders and the delivery of more student accommodation and specialised housing for older people, in areas most in need. The scheme is delivered by the British Business Bank.

Louis Taylor, CEO, British Business Bank said:  

“We welcome this £1bn expansion of the Bank’s ENABLE Build programme by the government. Unlocking finance for smaller housebuilders is more important than ever, not just to help build homes across the UK’s Nations and regions and provide people with security, but also to stimulate much-needed growth for the UK economy. Combined with the ENABLE Build programme’s recent expansion to include provision to non-bank lenders, this means that the sector will benefit from both an increased volume and choice of finance.”? 

Build-to-Rent (BTR) developers will also see the Private Rented Sector Guarantee Scheme reopen at the end of the year, with nearly £2 billion available to ramp up housebuilding. A broader variety of projects will also be eligible to access additional lending.

Richard Green, Partner at BTR developer, Venn Partners, added:  

“Build-to-rent can play a key role in the UK’s private rented sector, delivering high quality, well managed homes funded by institutional investors. Venn looks forward to continuing to support the sector with attractive loans from the PRS Guarantee Scheme”.