In partnership with Barclays Bank, the UK government has announced a ten-figure loan to help support small and medium-sized property developers to build close to the 300,000 new homes per year targets suggest the UK needs.
Summary:
- UK government and Barclays Bank have announced a new £1 billion loan to support British property developers in delivering more new homes
- Up to £100 million will be made available to each developer, as the government aims to meet its targets of bringing 300,000 new homes to the market each year
- Rising demand for rental homes is driving rents up in key investment cities
Does this highlight the huge undersupply of property in the UK?
As demand continues to outstrip availability, the UK government and Barclays Bank have announced a new £1 billion finance deal to help support small and medium-sized developers in the country build more homes.
Housing Secretary James Brokenshire hailed the opportunity as another important step in “giving smaller builders access to the finance they need to get housing developments off the ground”.
The Housing Delivery Fund will be overseen by the government’s Homes England delivery agency and will help to open up the housing market to a greater share of property developers. As much as £100 million will be made available to developers able to demonstrate the necessary track record and experience in delivering the type of properties today’s homeowners and tenants demand. This includes purpose-built apartments for rent.
Brokenshire added: “This is a fantastic opportunity to not only get more homes built, but also to promote new and innovative approaches to construction and design that exist across the housing market.”
John McFarlane, Barclays’ Chairman, commented: “There is a vital need to build more good quality homes across the country. This £1 billion 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.”
Government targets dictate that the UK needs to build 300,000 new homes each year by the mid-2020’s to meet the rising demand for property across all sectors of the market.
In the private rented sector, traditional buy-to-let homes can no longer meet the needs of the UK’s rising number of younger tenants; those that demand experience living in prime city centre locations.
Source: Select Property