Housing Growth Partnership launched by the Government

£100M investment hopes to provide additional 2,000 homes.

Housing Minister Brandon Lewis has today launched the Housing Growth Partnership to provide a boost to small housebuilding companies.

This dedicated initiative will provide a £100M boost to small builders who will see their businesses supported with this cash injection, hopefully resulting in keeping the country building, which in turn will mean more housing supply and further job opportunities.

It is something that the Government needs to address when the numbers in the last 25 years are taken into account. The companies building up to 100 units a year has decreased by 75% and it is hoped that the Housing Growth Partnership will dovetail with the long-term economic plan to increase the number of homes constructed in the communities that need them.

The Housing Growth Partnership will invest alongside small and medium-sized housebuilders with a track record of delivering residential developments. It will also be a boost for those who have single unit completions between ten and 100 since 2012.

Projects with a gross development value between £750,000 and £12M will be supported by the Housing Growth Partnership, with investments on offer for projects in the range of £500,000 to £5M.

Lloyds Banking Group has invested £50M in the Housing Growth Partnership, with this sum matched by the Government.

It will help smaller builders invest in projects, develop business, employ more people, and ensure that their own workforce is as skilled as possible.

Housing Minister Brandon Lewis, spoke of the Government’s determination to help companies.

He said: “The 2008 economic crash devastated our army of small builders, with delivery falling from 44,000 homes to just 18,000. Seven years on, companies are getting back on their feet but we’re determined to give them all the help they need.

“Access to finance is one of the biggest challenges they face so that’s why today I’m launching this £100M commitment which will help our smaller builders fund new projects, expand their businesses, create more jobs and build more homes.

“With housing starts at a seven-year high and climbing, and homes granted planning permission at 261,000 – the highest since 2007 – this will ensure we maintain this momentum and keep the country building.”

With the new housing starts being at their highest level since 2007, it is hoped that smaller builders can take advantage of the extra work through the Housing Growth Partnership.

Brian Berry, the Chief Executive of the Federation of Master Builders, is happy with this “trailblazing approach” and believes that addressing the finance issue is the best way to get smaller builders working on the housing market more.

He added: “There has been a sharp decline in the numbers and output of SME house builders over the past eight years.

“One of the biggest obstacles these firms have faced is a severe difficulty in accessing finance. Without adequate access to finance, they cannot bring forward the number of homes they would otherwise.

“The new Housing Growth Partnership will directly help to address this issue and the additional £50M greatly increases the scale of what can be achieved.

“We commend Lloyds Banking Group and the Government on their trailblazing approach and we hope this marks a real turning point in the fight to provide adequate finance to the SME house building sector.”

The partnership is aiming to create an extra 2,000 homes by making approximately 50 investments.

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