A funding scheme first launched in 2016 has been renewed to help build 10,000 new homes within the next four years.
Founded by Lloyds Banking Group and Homes England, the Housing Growth Partnership II (HGP) provides British SME and regional housebuilders £300 million for extra development work.
The deal has been forged to increase the number of newbuilds across the country and reduce the homebuilding funding gap.
Additionally, the scheme will improve several housing tenancies to encounter for every homeowner’s requirements.
After the implementation of the first HGP in 2016, this additional fund will help secure the partnership’s original aim of building 10,000 new houses by 2025.
However, the latest fund has the capacity to invest into bigger housing developments worth more than £70 million.
In addition, it will enable the development of diverse housing schemes, such as retirement living, build to rent and regeneration.
Sustainable housing and environmentally-friendly building techniques will also be at the heart of the new development scheme.
Since launching, the HGP has funded the building work of 4,568 new houses across Great Britain, with the majority of these homes now occupied.
MP and Housing Minister, Christopher Pincher said: “It is a top priority of this Government to increase housing supply so hard-working people can be helped into home ownership.
“A thriving SME sector is crucial to our house building targets and ambitions. This significant amount of funding will help smaller and regional housebuilders by providing them with the financial support necessary to deliver much needed new homes.”
Vic Hepburn, CEO of Housing Growth Partnership, said: “We are pleased to be building on the success of the Housing Growth Partnership by extending the range of support we can provide to the UK housebuilding market.
“This includes our new multi-tenure approach which will provide more flexibility for housebuilders and more choice for homebuyers.”
She added: “The introduction of the Regional Growth Initiative will also allow the Housing Growth Partnership to support the most ambitious housebuilders in a more substantial way with additional financial and strategic support.”
Chief Investment Officer at Homes England, Harry Swales said: “The Housing Growth Partnership has already proved to be a huge public-private sector success and we’re now pleased to expand the fund to offer SMEs further support.
“By injecting this additional investment and harnessing Lloyds Banking Group’s commercial skills we’re able to diversify the market, support increasing numbers of builders and provide the homes the country needs.”
Regional Growth Initiative
As part of the HGP, the fund is also supporting the Regional Growth Initiative, which aims to help builders in every region of the UK.
Support from the HGP will enable SME housebuilders to expand their businesses by investing in bigger construction sites.
Stonewood Partnerships, Cruden Homes, Durkan Homes, Briar Homes and Genesis Homes are the first SME housebuilders to be involved with the Regional Growth Initiative.
Support for the housing market
Lloyds Banking Group is committed to increasing the number of affordable homes in the UK, after investing £9 billion in the social housing sector within the last three years.
Additionally, they have supported a sustainable housing scheme which aims to make every home in the social housing sector greener.
Equally, the group has pledged to offer further support for first time buyers by offering to invest a further £1 billion by the end of 2021, totalling £10 billion for the entire year.
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Dean Williamson MRICS