Hampshire Trust Bank secures ENABLE Build contract

This will help the lender support SME housebuilders in the UK and follows HTB’s previous ENABLE Guarantee which was launched in 2017. The existing scheme has provided £342m in housebuilder funding so far and supported the development of 1,547 housing units. 

The latest ENABLE Build guarantee aims to reduce the amount of capital required to be held against lending to SME housebuilders by the participating bank. The government will take on a share of the lender’s risk on a portfolio of loans to small businesses for a fee. 

It will provide £1bn of guarantee support to housebuilders, and in the 12 months to March 2022 supported over £330m of lending to more than 130 SME housebuilders. 

The programme was launched in 2019 and HTB joins United Trust Bank as one of the lenders which has been involved. 

Reinald de Monchy, managing director, guarantee and wholesale solutions at British Business Bank, said: “Increasing the current housebuilding supply in the UK is a priority for decision-makers across local and national governments. This ENABLE Build transaction will allow HTB to increase funding to SME housebuilders, helping them deliver more housing and allowing more people to get onto the property ladder.”  

Alex Upton (pictured), managing director – development finance at Hampshire Trust Bank, added: “We all know that building houses in the UK is dominated by a handful of gigantic players but SME housebuilders are vital, not only for our market but also for our communities and our country as a whole. They are often the beating heart of regional and local property markets and they provide a harbour for the training and development of design, craftmanship and skill in the battle against homogeneity.   

“But SME housebuilders have faced some stiff headwinds. The ENABLE Build guarantee shows great commitment from the British Business Bank to support SME housebuilders. We are confident that HTB will be able to support an increased number of SME housebuilders to improve housing supply, create employment and stimulate local economies across the country.”