A new collaboration between Barclays and Homes England will offer £1 billion in extra finance to build thousands of new homes.
Barclays will put £875 million into the Housing Delivery Fund with £125m coming from Homes England, the government agency set up in 2017 to improve housing across England.
Most of the cash will be directed towards supporting small and medium-sized businesses to build property for sale or rent, including social housing,retirement living and private rented accommodation.
Diversifying the market
With loans ranging from £5m to £100m, developers and house builders will bid for the finance needed to deliver their own projects and help diversify the housing market where almost two-thirds of new homes are currently delivered by just 10 developers.
Launching the fund, John McFarlane, chairman of Barclays, said: “There is a vital need to build more good quality homes across the country. This £1bn fund is about helping to do exactly that by showing firms in the business of house building that the right finance is available for projects that help meet this urgent need.
“We are very pleased to be working with government to get the country building more homes, more quickly.”
Housing Secretary James Brokenshire also welcomed the new finance for the Housing Delivery Fund. The Government announced last year that it would prioritise increasing the delivery of new homes in England, setting a target of 300,000 to be built every year within a decade.
Mr Brokenshire said: “This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”
And the chairman of Homes England, Sir Ed Lister, added: “The Housing Delivery Fund demonstrates Barclays’ commitment to the residential sector and will provide a new funding stream for SME developers to help progress sites and deliver more affordable homes across England.”