Under the newly announced FLS, the Bank of England will lend money to financial institutions at below market rates to stimulate lending to homeowners and businesses.
Lending to the self-build community, the fastest growing sector in UK housing will create a positive ripple effect through the home economy, helping homeowners and boosting employment of local construction workers.
Buildstore suggests for every £1m lent, six new homes could be built and for £1bn, 6,000 construction workers could be kept in employment.
BuildStore is urging Housing minister Grant Shapps to get behind the scheme.
Raymond Connor, chief executive of BuildStore Financial Services said: “I am directly appealing to Mr Shapps to join forces with self-build groups while he has the government’s attention on this issue, and to encourage lending institutions to allocate funds in this way. The demand is clearly there for self-build so let’s get the money aimed where it can do most good.”
