Housebuilders are being encouraged to apply for a share of a £300 million pot to support the development of 10,000 new homes by 2025.
The Housing Growth Partnership (HGP) has been launched in collaboration with Lloyds Banking Group and Homes England.
The partnership says the initiative will provide additional assistance to the most ambitious regional housebuilders in the UK.
Now small and medium-sized housebuilders have been invited to apply for share of the funding in a move designed to tackle the UK’s housing shortage and bring a boost to the UK economy.
If you are a developer, here’s what you need to know.
What is the Housing Growth Partnership?
According to the Government, the HGP aims to “bridge the homebuilder funding gap, allowing housebuilders to build more homes across the UK and grow their businesses.”
Supporting the development of 10,000 new homes by 2025, the fund can be used to deliver a wide range of housing projects, including Build to Rent, Regeneration and Retirement Living.
The funding will be provided via a split of £180 million from Lloyds Banking Group and £120 million from Homes England.
How much funding is available?
Up to £10 million per investment is available for individual housebuilders, for projects with a development value of up to £75 million.
Am I eligible for funding?
Developers building between five and 500 units per year are eligible for support from the Housing Growth Partnership.
Commenting on the launch of the scheme, Vic Hepburn, CEO of Housing Growth Partnership, said: “We are pleased to be building on the success of the Housing Growth Partnership by extending the range of support we can provide to the UK housebuilding market.
“This includes our new multi-tenure approach which will provide more flexibility for housebuilders and more choice for homebuyers.”
Housing Minister Christopher Pincher added: “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.”
HGP says its mission is to attain a diverse and sustainable residential development sector with housebuilders and developers playing a significant role in stimulating the level of housing supply that the country needs.
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