Following the recent announcement of the ‘Capacity Fund’, primarily for larger developments, we take a look at what other funds are available to increase the number of new homes being built in England, particularly for smaller builders.
Let’s talk specifically about one of the more recent funding opportunities, the Home Building Fund consisting of £3 billion towards housing developments and infrastructure. £1 billion of which has been earmarked for smaller builders to deliver 25,000 new homes by 2020.
If you are planning to build a residential development have a read through the criteria below to see if you could be eligible for some of the funds.
The Home Building Fund
Finance can be a barrier for small builders and innovative schemes, so as well as helping larger builders and developers, the Home Building Fund is also open to small builders, community builders, custom builders and regeneration specialists.
So whether you are building homes for sale or rent, the fund provides up to 5 years finance to meet the development costs of your project.
Who can apply for the Home Building Fund?
A builder or developer who is eligible for the funding must:
- Be building a minimum of 5 homes
- Be building in England
- Be a private sector organisation with majority control over the site
- Demonstrate that without the loan the development would not progress as quickly, or at all
Successful applicants will be able to secure loans of between £250,000 and £250million.
Housing associations will also be able to bid for loans from the fund.
How to apply for the Home Building Fund?
The first step is to contact the Homes Community Agency (HCA) by email, phone or post. If your project meets the eligibility criteria, you will be put in touch with the investments team who will help you with your application.
Phone: 0300 1234 500
Post: Home Building Fund, Homes and Communities Agency, Fry Building, 2 Marsham Street, London SW1P 4DF
As part of the process you will need to provide certain details about your development plans and your business finances.
For more information take a look at An Introduction to the Home Building Fund from the Homes and Communities Agency.
Don’t miss out on your share of the pot, get applying!
By Frzana Ferguson
Please Note: Every care was taken to ensure the information in this article was correct at the time of publication. Any written guidance provided does not replace the reader’s professional judgement and any construction project should comply with the relevant Building Regulations or applicable technical standards. However, for the most up to date LABC Warranty technical guidance please refer to your Risk Management Surveyor and the latest version of the LABC Warranty technical manual.