Barclays and Homes England are offering loans to developers who can show they will use the funds to build a range of tenures.
Barclays said that the development finance will build thousands of new homes across England, and help increase the pace and volume of housing provision.
The funding is open to all but a greater emphasis will be put on diversifying the housing market, as at present almost two-thirds of homes are built by just 10 companies. The FMB recently identified access to finance as one of the smaller housebuilders’ biggest barrier to building more homes.
Loans ranging from £5 million to £100 million are available for developers and housebuilders who are able to demonstrate the necessary experience and track record to undertake and complete their proposed project, the bank said.
A key priority of The Housing Delivery Fund is to support small and medium sized businesses to develop homes for rent or sale including social housing, retirement living and the private rented sector, whilst also supporting innovation in the model of delivery such as brownfield land and urban regeneration projects.
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.”
Housing Secretary Rt Hon James Brokenshire MP, added, “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.”
Chairman of Homes England, Sir Ed Lister, concluded, “The Housing Delivery Fund demonstrates Barclays’ commitment to the residential sector and will provide a new funding stream for SME developers to help progress sites and deliver more affordable homes across England.”