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Barclays and the government launch £1bn house building fund

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  • 12/09/2018
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Barclays and the government launch £1bn house building fund
Barclays has teamed up with the government to offer £1bn of development finance for thousands of new homes in England.

 

The Housing Delivery Fund will provide competitively priced loans from £5m to £100m to developers and housebuilders, who show the experience and track record to complete their proposed project.

Loans are available to new clients, as well as existing Barclays borrowers, in an effort to help increase the pace and volume of housing provision.

The fund is also aimed at diversifying the housing market by supporting small and medium sized businesses; almost two-thirds of homes are currently built by just 10 companies.

Of the £1bn fund, Barclays is providing £875m and Homes England, the Government’s national housing agency, will contribute £125m.

The total funding for a development scheme is up to 80% Loan to Cost and 70% Loan to Value allowing developers to stretch their equity/capital further.

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.”

Housing secretary James Brokenshire added: “My priority as Housing Secretary is to get Britain building the homes our country needs.

“This new fund – partnering Homes England with Barclays – is a further important step by giving smaller builders access to the finance they need to get housing developments off the ground.

“This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”

The government aims to add 300,000 new homes a year to supply by the mid-2020s after 217,000 homes were built last year.

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