Levelling Up funding boost for SME housebuilders
Development finance is now available for small and medium housebuilders through the Levelling Up Home Builders Fund.
Small and medium housebuilders struggling to access traditional development finance can take advantage of government funding to get much needed homes built across England through the Levelling Up Home Building Fund.
Through the government fund, Homes England provides development loans to small and medium housebuilders with the dual aim of getting much needed homes built, as well as creating a more diverse and resilient housing market.
- are a UK-registered corporate entity or limited liability partnership
- plan to build or refurbish five or more homes on a site in England (but less than 2,000)
- have a controlling interest in the land
- the project would stall, or progress much less quickly, without this finance
Homes England has offered this kind of loan financing for a number of years and by enabling new entrants to build their track record, it has helped hundreds of small builders to build more homes and grow their business.
Homes England helped the newly-established Sky-House to deliver its innovative take on ‘back-to-back’ urban housing and grow its business.
David Cross, Managing Director of Sky House, said: “It is no understatement to say that without Homes England’s support we wouldn’t have been able to start even our first development.
“From Waverley Phase 1 to Oughtibridge Mill, we will complete 84 homes alongside commercial space and we now have close to 400 homes and commercial space on the drawing board and a secure pipeline of funding and sites for the next 3-5 years.
“By accessing Homes England’s support we have shifted from developer to housebuilder and now, more importantly, to place maker with close to 40 full and part time staff across the business alongside a growing cabinet of awards. All the team at Homes England have been amazing and we cannot thank them enough- all we can do is keep delivering great homes.”
The Federation of Master Builders, the trade body that represents the home building industry in England and Wales, agrees that support for smaller builders is crucial to getting more homes built.
Brian Berry, Chief Executive of the Federation of Master Builders, said: “We need to build more homes as there is a serious undersupply which is stopping many first-time buyers getting on the house ladder and denying those households most in need who require social housing.
“Small local house builders have the potential to step up and build the homes needed but they need access to the very small sites of land if they are to deliver the Government’s levelling up ambitions. At a time when there are concerns about the quality and design of new homes, local house builders are best placed to build the homes that local communities want and need.”
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