A £3 BILLION loan scheme for private developers has been welcomed by property agents Strutt & Parker.

The Home Building Fund is a government scheme to provide loan finance to small and medium-sized builders developing sites of at least five homes.

The firm said the initiative, launched earlier this month, would quicken the delivery of new housing and urged eligible builders and developers to apply.

Oliver Cooper, surveyor in Strutt & Parker’s Cirencester office, said: “The Home Building Fund is a welcome government support scheme, provided through the Home and Communities Agency, primarily targeted at small and medium sized builders who often find it difficult to get financial support for schemes for sites of at least five homes.

“It should help to unlock development or speed up the delivery of much needed housing. We would certainly encourage developers to consider taking part in the scheme to assist in development and infrastructure projects and enable sites to come forward early.”

The details

  •  £3 billion fund availableu Loans of £250,000 to £250 million are available with smaller loans considered for innovative housing solutions and serviced plots for custom builders
  • Typical terms are up to five years for development finance and up to 20 years for infrastructure loans
  • Interest is payable at transparent and pre-agreed variable rates
  • Finance is available to draw down up to March 31, 2021
  • Applicants must demonstrate that without the funding the scheme would not progress as quickly/, or at all
  • Developments must be in Englandu The borrower must be a private sector entity with majority control of the site
  • Development projects must build a minimum of five homesu The borrower must be a UK registered corporate entity
  • Infrastructure projects must ultimately lead to the development of new housing

For further information please contact Mr Cooper in Strutt & Parker’s Cirencester office on 01285 659661.