Housing Minister Brandon Lewis announced today that small builders will receive a £100 million cash boost to recognise and support their important role in keeping the country building.
The Housing Growth Partnership will be a dedicated initiative that will invest alongside smaller builders in new developments, providing money to support their businesses, assisting in the placement of workers on construction sites, and increasing housing supply.
The Partnership will also create a network of builders, including experienced developers, who will serve as mentors and advisers to those seeking to expand and grow their businesses.
Over the last 25 years, the number of companies building between one and one hundred units per year has dropped from over 12,000 to fewer than 3,000.
That is why the government has prioritised housebuilding in its long-term economic plan, in order to build the homes that communities desire while also creating jobs in construction and related industries.
According to the most recent housebuilding figures, starts have more than doubled since the same period in 2009 – with both starts and completions increasing in the past year, and the number of homes granted planning permission is at its highest annual total in eight years.
The Housing Growth Partnership, which was launched today, will assist small builders in contributing to this success.
The government has matched a £50 million investment from Lloyds Banking Group to establish the £100 million Housing Growth Partnership, which will assist smaller builders in investing in new projects and developing their businesses, allowing them to hire and train skilled workers and become more competitive in their local area.
The partnership anticipates around 50 investments, with the goal of providing an additional 2,000 homes.
“The 2008 economic crash devastated our army of small builders, with delivery falling from 44,000 homes to just 18,000 – 7 years on, companies are getting back on their feet, but we’re determined to give them all the help they need,” said Housing Minister Brandon Lewis.
“Access to finance is one of the most significant challenges they face, which is why I’m announcing today this £100 million commitment to help our smaller builders fund new projects, expand their businesses, create more jobs, and build more homes.”
“With housing starts at a seven-year high and rising, and homes granted planning permission at 261,000 – the highest level since 2007, this work will ensure we maintain this momentum and keep the country building.”
“The challenge of housing supply and affordability is one of the biggest issues facing Britain today,” said Andrew Bester, group director and chief executive, Commercial Banking, Lloyds Banking Group. “We at Lloyds Banking Group welcome the government’s announcement of support for the Housing Growth Partnership, which will double the capability to support SME house builders.” It will provide much-needed equity to SME home builders in order to support residential development projects, stimulate business growth, and facilitate access to conventional property development finance.
“We believe that building a greater number and variety of homes will help Britain prosper, and this partnership will help address the housing supply issue in the UK.”
“There has been a sharp decline in the numbers and output of SME house builders over the last eight years,” said Brian Berry, chief executive of the Federation of Master Builders. One of the most significant challenges these firms have encountered is a significant difficulty in obtaining financing. They will not be able to build as many new homes as they would otherwise if they do not have adequate access to finance.
“The new Housing Growth Partnership will directly contribute to addressing this issue, and the additional £50 million significantly expands the scope of what can be accomplished.” We applaud Lloyds Banking Group and the government for their pioneering approach, and we hope that this represents a true watershed moment in the fight to provide adequate financing to the SME housebuilding sector.”