DCLG and Lloyds Banking Group have launched the Housing Growth Partnership, which will provide £100m for small house builders.
The Housing Growth Partnership will invest alongside smaller builders in new developments.
Money will be used to support development projects with a gross development value of between £750,000 and £12m and will offer investments in the range of £500,000 to £5m for each project.
The government matched a £50m investment from Lloyds Banking Group to create the fund, which is expected to be used for around 50 investments, with the aim of delivering 2,000 homes.
It will also establish a network of builders, including developers, who will act as mentors and advisers to those looking to expand their businesses.
Housing minister Brandon Lewis said: “The 2008 economic crash devastated our army of small builders, with delivery falling from 44,000 homes to just 18,000. Seven years on, companies are getting back on their feet but we’re determined to give them all the help they need.
“Access to finance is one of the biggest challenges they face. So that’s why today I’m launching this £100m commitment, which will help our smaller builders fund new projects, expand their businesses, create more jobs and build more homes.”
