Barclays and Homes England have launched a £1bn of development fund to increase the pace and volume of housing provision.
The Housing Delivery Fund will be open to all and put greater emphasis on diversifying the housing market, as almost two-thirds of homes are built by just ten companies.
A key priority of the fund is to support small and medium-sized businesses to develop homes for rent or sale including social housing, retirement living and the private rented sector.
Loans ranging from £5m to £100m will be available for developers able to demonstrate the necessary experience and track record to undertake and complete their proposed project.
Total funding for a development scheme is up to 80% loan to cost and 70% loan to value.
John McFarlane, Barclays’ chairman, said: “There is a vital need to build more good-quality homes across the country. This £1bn fund is about helping to do exactly that by showing firms in the business of house building that the right finance is available for projects that help meet this urgent need.”
“We are very pleased to be working with government to get the country building more homes, more quickly.”
Of the £1bn fund, Barclays is providing £875m and Homes England £125m.
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