Despite its robust construction economy, the UK is widely considered to be facing a housing crisis. Associations such as the Builders Merchants Federation and the Federation of Master Builders estimate that the country could be as far as 1 million homes short of the number needed to meet its housing needs.
Funding and infrastructure incentives
For the last decade, the UK government has been working to alleviate these issues by offering funding incentives to developers both large and small as well as infrastructure initiatives to help unlock more potential housing sites. One such initiative, the Housing Infrastructure Fund, approved its first round of funding in February this year. £866 million has been allocated to local authorities from the £5 billion fund and government sources indicate that this has helped around 200,000 new homes get off the ground. With 300,000 homes to be built annually according to government targets, the then Housing Secretary Sajid Javid described the move as the “First step of the multi-billion pound investment we announced at the Budget to help build the homes our country needs.”
As for UK developers both large and small looking for development finance, The Home Building Fund is a separate £3 billion kitty that is open to applications from small builders, community builders, custom builders and regeneration specialists, as well as larger builders and developers. The fund is split into two parts, with £1 billion allocated for short term loan funding – aimed at small builders and innovators, and £2 billion in long term infrastructure funding.
Getting Britain building has never been more important
Key government figures like Home Secretary Javid and Chancellor Phillip Hammond have asserted that getting Britain building is one of their key priorities at this moment in time and that funding is being stimulated and encouraged for construction businesses of all sizes. The UK needs builders and the message is that the government is stepping up its efforts to provide support and finance for those organisations with the skills to solve the increasing problems of availability and affordability in the housing market.
If you need assistance in discovering whether these government initiatives could help your business, Panoptic can quickly and easily create a shortlist of construction finance options, tailored to suit your needs. For more information, please contact us today [https://panoptic.org.uk/contact-us].