A new fund has been set up to help builders provide an extra 10,000 new homes over the next three years.
The Housing Growth Partnership II (HGP) has been established by Lloyds Banking Group and Homes England and will provide £300 million to small and medium-sized regional housebuilders in the UK.
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 announced in 2016, the new £300 million commitment will help Housing Growth Partnership achieve its target of supporting the development of 10,000 new homes by 2025.
The new fund will be broader in scope to enable investment into larger housebuilding projects with a development value of up to £75 million. It will offer support for the delivery of a wider range of housing projects including Build to Rent, Regeneration and Retirement Living.
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.
Developers building between 5 and 500 units per year are eligible for support from HGP. Up to £10m per investment is available for individual housebuilders for projects with a development value of up to £75m.
Since its launch, HGP 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.
Housing Minister Christopher Pincher said: “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.”
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