Barclays has teamed up with Homes England to offer smaller house builders access to a £1bn pot of loan finance to tackle England’s housing shortage.
Competitvely-priced loans ranging from £5m to a maximum ceiling of potentially £100m, will be on offer to house builders with the necessary experience and track records.
They will be made available to existing and new customers and are designed to cover up to 80 % of costs or 70% of the value of the project.
Under the new arrangement, Barclays is putting up £875m, while Homes England will release £125m.
A key priority of The Housing Delivery Fund is to support small and medium sized businesses to develop homes for rent or sale including social housing, retirement living and the private rented sector, while also supporting innovation in the model of delivery such as brownfield land and urban regeneration projects.
Launching the fund, John McFarlane, Barclays’ Chairman, said: “There is a vital need to build more good quality homes across the country.
“This £1bn fund is about helping to do exactly that by showing firms in the business of house building that the right finance is available for projects that help meet this urgent need.
‘We are very pleased to be working with government to get the country building more homes, more quickly.”
Housing Secretary Rt Hon James Brokenshire, added: “My priority as Housing Secretary is to get Britain building the homes our country needs. This new fund – partnering Homes England with Barclays – is a further important step by giving smaller builders access to the finance they need to get housing developments off the ground.
‘This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”