The government and Barclays have teamed up as the government looks to achieve its promise to deliver 300,000 homes a year by the mid-2020s.
The two have joined forces to provide £1 billion of development finance to assist in the speed and volume of housing provision across England.
The chairman of Barclays, John McFarlane, said:
“There is a vital need to build more good-quality homes across the country. This £1 billion fund is about helping to do exactly that by showing firms in the business of housebuilding that the right finance is available for projects that help meet this urgent need.”
Developers and builders that can provide evidence of the required experience and record to complete their proposed project will be offered the loans.
The funding, available to new clients, and current Barclays clients, will vary from £5 million to £100 million.
The goal is to highlighting the importance of diversifying the housing market, and a main priority for the Housing Delivery Fund to assist small and medium-sized businesses.
James Brokenshire, the Housing secretary has said the fund “is a further important step” in building the homes the country needs 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.”
Sir Ed Lister, the Chairman of Homes England has stated:
“Homes England has been established to play a more active role in the housing market and do things differently to increase the pace, scale and quality of delivering new homes. The Housing Delivery Fund demonstrates Barclays’ commitment to the residential sector and will provide a new funding stream for SME developers to help progress sites and deliver more affordable homes across England.”
Barclays will be providing £875 million towards the fund, and Homes England will provide £125 million.
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