The UK government has announced a transformative £3 billion support package to accelerate housebuilding, aiming to deliver thousands of new homes, stimulate economic growth, and create jobs. Housing Minister Matthew Pennycook unveiled the initiative, which provides vital financial guarantees to housebuilders, making loans from banks and lenders more accessible and giving developers the confidence to build at scale.
Supporting Builders, Supporting Growth
Government guarantees reduce risks for lenders, encouraging them to extend more credit to housebuilders. With access to credit being a significant hurdle for growth in the sector, this initiative seeks to remove barriers, paving the way for a surge in construction projects across the country.
The programme forms part of the government’s ambitious target to build 1.5 million homes over the next five years. By unlocking funding, the initiative is set to bring more families onto the property ladder, boost economic activity, and support the development of thriving communities.
Doubling Down on ENABLE Build
Key to this initiative is the doubling of the ENABLE Build scheme to £2 billion, providing a significant boost to smaller housebuilders. This will help deliver over 10,000 new homes, including student accommodation and specialised housing for older people, in areas where housing demand is highest.
For Build-to-Rent developers, the Private Rented Sector (PRS) Guarantee Scheme will reopen by the end of the year, offering nearly £2 billion in guarantees. A broader range of projects will now qualify for these funds, expediting the completion of critical housing developments.
The government estimates that these expanded guarantees could help deliver over 20,000 additional homes, further cementing the UK’s commitment to tackling the housing crisis.
Industry Leaders Welcome the Initiative
Housing Minister Matthew Pennycook emphasised the pivotal role of small housebuilders and Build-to-Rent operators in achieving the government’s housing goals:
“SME housebuilders and Build-to-Rent operators are crucial to delivering 1.5 million new homes during this Parliament. The additional support provided by our housing guarantee schemes will enable them to access affordable loans and build thousands of new homes across the country.”
Brian Berry, Chief Executive of the Federation of Master Builders, echoed this sentiment, highlighting the importance of supporting small builders:
“Small housebuilders face significant financial challenges, and diversifying the housing market is essential to meeting the UK’s housing needs. This increased support is welcome and must reach the builders who need it most.”
Louis Taylor, CEO of the British Business Bank, noted the wider economic benefits:
“Unlocking finance for smaller housebuilders is critical, not just for housing delivery but also for stimulating economic growth across the UK.”
A Brighter Future for Housing
With the government’s commitment to ensuring accessible financing for developers and its focus on sustainability, the expanded housing guarantees mark a significant step forward. By empowering housebuilders, the initiative aims to transform housing delivery across the UK, creating better opportunities for families, workers, and communities while driving economic growth.
This multi-billion-pound package demonstrates that building homes isn’t just about bricks and mortar—it’s about building a stronger, more sustainable future for all.
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