Small and medium-sized developers have been invited to apply for up to £10 million in equity funding to build new homes.
The new fund, known as the Housing Growth Partnership (HGP), aims to support the development of 10,000 new properties by 2025.
Funded by Lloyds Banking Group and Homes England, the initiative aims to close the gap between the smallest and largest developers, while also furthering the Government’s aim of building 300,000 new homes a year.
Up to £300 million will be available to support housebuilding projects with a development value of up to £75 million. The fund will support a wider range of housing tenures than traditional finance schemes, such as Build to Rent, Regeneration and Retirement Living.
It will also prioritise projects with a focus on sustainability and those using modern methods of construction and “other evolutionary construction methods”.
Only developers building between five and 500 units per year are eligible for support from the HGP, with maximum investment capped at £10 million.
Commenting on the fund, Housing Minister Christopher Pincher said: “A thriving SME sector is crucial to our house building 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.”
Harry Swales, Chief Investment Officer at Homes England, added: “The Housing Growth Partnership has already proved to be a huge public-private sector success and we’re now pleased to expand the fund to offer SMEs further support. 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.”
Click here to learn more about the Housing Growth Partnership.