The Federation of Master Builders [FMB] and UK Finance have joined forces to publish an updated ‘Guide to Development Finance’ to encourage more small and medium-sized [SME] housebuilders to build more homes.
In the 1980s, small and medium-sized [SME] housebuilders used to deliver 40 per cent of UK homes, but now this is down to around 12 per cent. For new, returning and growing developers, finance to build the high-quality homes, that the country desperately needs, could help reverse this trend.
Securing finance can often be seen as a difficult and complex aspect of building for any small developer. The guide will help SME housebuilders to understand the overview of products available to them and the process of how to apply, making it easier to access the finance they need and helping them deliver the UK’s much needed homes.
UK Finance and the FMB recognise the challenge of securing finance and are both committed to supporting housebuilders on their finance journey. Turning around the fortunes of small, local housebuilders will help the UK deliver good quality homes and boost local economies, supporting the levelling up agenda.
Brian Berry Chief Executive of the Federation of Master Builders [FMB] said: “This guide, which was developed in collaboration with the Department for Levelling Up, Housing and Communities, is an important part of a small builder’s arsenal when looking to build new homes.
‘We know that development finance has often held small builders back, with 29 per cent of FMB members citing it as a barrier to building new homes. The aim is that this document helps small builders through this complex, but important part of the development process”.
Berry continued: “This guide provides a comprehensive overview of what products are available and where to get them. If we are to deliver more homes for the nation, then small local housebuilders must have barriers removed to help them deliver and I hope this guide goes someway to aid them in this process.”
Stephen Pegge, managing director of commercial finance at UK Finance said: “Finance is a critical element when planning a small-scale housing development and lenders are committed to supporting builders access the funding they need.
“This guide has been created for small, local housebuilders to ensure they have the knowledge and guidance on the steps to take to get financial support. There are a wide range of finance options available, all of which could help builders undertake a larger project than their own cash would allow, in turn helping them to build homes and boost local economies across the country.”