Homes England, the government’s housing and regeneration agency, provides development loans to small and medium housebuilders through the Levelling Up Home Building Fund. With the dual aim of getting much-needed homes built, and creating a more diverse and resilient housing market, the Fund supports smaller house builders that struggle to access finance through traditional bank lenders, with loans from £250,000.
How to apply for development finance
Applying for development finance can be done by either calling 0300 1234 500 or emailing fundingenquiries@homesengland.gov.uk.
To be eligible, builders need to be 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), and have a controlling interest in the land
Brian Burt, Head of Development Finance – North West, at Homes England, said: “Homes England has offered this kind of loan financing for a number of years and by enabling new entrants to build their track record, we have helped hundreds of small builders to build more homes and grow their business.
“Our mission is to help get more homes built in the places that need them most. We are eager to help small and medium-sized housebuilders access development finance and support them where traditional lenders can’t.”
The Federation of Master Builders, the trade body that represents the home building industry in England and Wales, agrees that supporting smaller builders is crucial.
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 housing 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.”
