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Government launches £624m housebuilding loan fund

By 05/11/2021No Comments

The government has announced a new £624m loan fund for house builders, including SMEs, to help kickstart new housing projects. 

Housebuilding will get a £624m boost via the new loan fund (picture: Getty)

Housebuilding will get a £624m boost via the new loan fund (picture: Getty)


Government announces £624m housebuilding loan fund #UKhousing

The Department for Levelling Up, Housing and Communities (DLUHC) has said the funding will be available from this year up to 2024-25 and is anticipated to help build up to 116,000 new homes.

The loans are available on a 20-year term and will be focused on transforming brownfield land and improve public transport, build schools and provide infrastructure for new homes.

Housing minister Christopher Pincher said: “We are building the right homes in the right places so more young people and families can get on the housing ladder.

“Improving transport links, and building schools and health facilities are key to unlocking new homes and creating vibrant places where communities can thrive.

“This money will build on our commitment to bring derelict and abandoned sites back to life, regenerating towns and cities as we level up across the country.”

The funding is part of the £2.2bn of loan financing made available at the Spending Review to support infrastructure and drive housing supply.

Loans will be administered by Homes England through the Home Building Fund – an existing housing supply programme that makes loan finance available to developers.

According to the DLUHC, the Spending Review has allocated a further £1.8bn to regenerate brownfield land and deliver transport links and community facilities.

Peter Denton, chief executive of Homes England, said: “This new infrastructure funding will be a powerful catalyst for creating new homes, places and communities.

“It gives us the resources we need to back more developments like Houlton in Rugby, where a £35m funding injection has helped to create new primary and secondary schools, a link road to Rugby town centre, and wider infrastructure needed to build a community of up to 6,200 homes.”

The loan fund comes shortly after the government confirmed the £11.5bn of affordable housing funding settlement, a £2bn cladding tax and a £1.8bn brownfield development fund in the Budget last month.

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