SME housing developers need to make the most of the Builder’s Finance Fund announced by the Chancellor in the last budget to help unlock sites stalled during the downturn.
Part of a package to help stimulate further the construction sector, developers are being urged to act now in order to make the most of the £500 million pot that it is hoped will galvanise local housing projects.
The idea outlined by the Chancellor is to offer loans to SME developers and help sites of up to 250 homes that have been put on ice due to difficulty in accessing funds.
With the number of homes being built running at about half the number required in the UK the initiative is aimed at easing the growing housing crisis in Britain.
Paul Evans, managing director of Pilning-based Helm Construction said: “With banks still acting cautiously when lending for small residential developments, this funding could help unlock housing units stalled due to difficulty in accessing finance.
“My fear is that not enough build firms are fully aware of this new source of funding and should look into it further before it’s too late.
“It’s good news that central Government is freeing up the purse strings in order to assist the beleaguered build sector which during the downturn took a real battering. For some SME builders is may be too little too late, but new entrants to the market could find this source of funding useful.”
SME house builders accounted for the vast majority of new build properties in the country so it’s vital they are given access to the right sort of finance in order to not only grow but to provide much needed housing stock.
Evans added:“If the rules and regulations on planning applications were also made easier then we would see a real boost to the sector.