A new fund aims to support the development of 10,000 new homes by 2025, with the Housing Growth Partnership (HGP) pledging £300m equity funding to support regional and SME housebuilders.
Established by Lloyds Banking Group and Homes England, the partnership aims to bridge the homebuilder funding gap, allowing housebuilders to build more homes across the UK and grow their businesses.
Building on the success of the first HGP fund in 2016, the new fund will be broader in scope to enable investment into larger housebuilding projects with a development value of up to £75m.
Vic Hepburn, CEO of Housing Growth Partnership, said: ‘We are pleased to be building on the success of the Housing Growth Partnership by extending the range of support we can provide to the UK housebuilding market. This includes our new multi-tenure approach which will provide more flexibility for housebuilders and more choice for homebuyers.
‘The introduction of the Regional Growth Initiative will also allow the Housing Growth Partnership to support the most ambitious housebuilders in a more substantial way with additional financial and strategic support.’
Housing minister, Rt Hon Christopher Pincher MP, added: ‘It is a top priority of this Government to increase housing supply so hard-working people can be helped into home ownership. 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.’
The partnership will also look to prioritise projects with a greater sustainability focus, as well as those using modern methods of construction and other evolutionary construction methods.
Since its launch, the Housing Growth Partnership has invested alongside 46 housebuilders to support the delivery of over 4,568 new homes, with nearly half now completed and sold to families across the UK.
In related news, the National Federation of Builders (NFB) reports that the material crisis is harming the government’s housebuilding and construction ambitions and the sector needs help in addressing it.
Photo by Brett Jordan