UK Housing and Planning Minister Matthew Pennycook has announced a new substantial support package, confirming billions of pounds in guarantees for house builders across the country.
The minister has confirmed that the new measures include an additional £3bn ($3.79bn) in housing guarantees, designed to make loans more accessible for builders from banks and lenders.
This initiative is aimed at bolstering the construction of more than 20,000 new homes, with a focus on aiding small-and-medium enterprise (SME) homebuilders and the build-to-rent (BTR) sector.
The package is part of a broader effort to stimulate economic growth, create jobs, and help more families own homes.
This financial support is intended to instil confidence within the industry and kickstart a new wave of house building across the country.
Government guarantees play a pivotal role in reducing lender risk, thereby encouraging an increased supply of credit to house builders.
The latest government initiative promises to contribute to the goal of building 1.5 million homes over the next five years.
Meanwhile, the ENABLE Build scheme will see its funding doubled to £2bn, which will assist smaller housebuilders in delivering more than 10,000 new homes. This includes student accommodation and specialised housing for the older generation, particularly in areas with the greatest need.
To further expedite housing development and meet the five-year target, the government has introduced several other measures.
These include an overhaul of the country's planning system, the launch of a New Homes Accelerator group, the introduction of 'brownfield passports', and the establishment of an independent New Towns Taskforce.
Additionally, funds totalling £115m have been awarded to councils to unlock housing on brownfield sites and address homes stalled by nutrient neutrality rules.
Pennycook said: “SME house builders and build-to-rent operators have a crucial role to play in delivering the government’s target of 1.5 million new homes in this parliament.
“The significant additional support provided by our housing guarantee schemes will enable them to access low-cost loans and support the building of thousands of new homes across the country.”
