Announced in the recent Spring Statement, Government has put forward a range of measures to boost housing supply, including an additional £60 million investment in the Housing Growth Partnership, which supports Small- and Medium-Enterprise (SME) housebuilders.
The Housing Growth Partnership (HGP) enables SMEs to invest in housing projects and develop businesses, with a remit for the regional residential development community to address housing affordability.
The £60 million Government investment in the HGP, provided by Homes England (previously the Homes and Communities Agency) will be matched by Lloyds Banking Group, bringing the total additional investment to £120 million.
Since it was established in 2015 the previous £100 million fund has already committed to deliver 2,000 homes over 35 small sites in the UK by partnering with SME builders, who cannot easily access development finance.
It also provides ongoing security to a number of firms for their funding and the opportunity to support more builders across the UK, allowing them to recruit and train skilled workers and become more competitive.
Andy Hulme, CEO and Head of Fund for Housing Grown Partnership said, “The announcement of further funding marks another significant milestone in the evolution of the Housing Growth Partnership.
“This supports our core purpose of accelerating the delivery of homes across the UK through our partnerships with small and mid-sized housebuilders.”
Nick Walkley, Chief Executive of Homes England said, “The Housing Growth Partnership shows what is achieved when we partner with the private sector and double the amount of capital available to lend to SMEs, offering excellent value for money for the tax payer.
“Homes England is harnessing Lloyds’ commercial skills and contacts and our investment capital to provide a new source of funding for SME developers who will then build more than 3,400 new additional homes in England.”
Also announced in the Spring Statement was a £1.67 billion funding package for affordable homes in London, and £100 million funding boost to the West Midlands for a housing package to support the mayor’s ambitious target of delivering 215,000 homes by 2030 to 2031.
The announcements follow Housing Minister Dominic Raab’s recent confirmation that the first wave of £15.8 million of the Planning Delivery Fund has been awarded to help speed up planning decision and delivery quality new homes.
The finance is designed to enable councils to process more applications, implement new reforms and also train planners to tackle the housing challenges faced by their local area.
Money awarded to bidders will also allow local authorities to access the latest expertise on design and town planning, driving up the quality of new homes built.
Housing and Planning Minister Dominic Raab said: “This cash boost ensures councils have the resources needed to make quicker decisions on planning applications, delivering quality housing at a faster rate.
“It’s part of our strategy to build the homes this country needs whilst also supporting residents to have their say on the kind of development that takes place in their area.”