£300m in additional funding to go to UK housebuilders

The Housing Growth Partnership has today announced a new £300 million commitment toward housebuilding.

The partnership, established by Lloyds Banking Group and Homes England in 2016, will direct these funds toward small and medium-sized enterprises (SME) and regional housebuilders to support the development of 10,000 new homes by 2025.

The funding will be provided via a split of £180m from Lloyds Banking Group and £120m from public body Homes England.

It is estimated that 340,000 homes will need to be built every year until 2031 to meet growing demand in England. The government has committed to constructing 300,000 annually.

However, prices are also a core feature of current housing issues. A 2019 report by the UK Collaborative Centre for Housing Evidence argued that constructing 300,000 houses per year in England would only cut house prices by around 10% over 20 years.

Housing minister Christopher Pincher MP said: “It is a top priority of this Government to increase housing supply so hard-working people can be helped into home ownership.

“A thriving SME sector is crucial to our house building targets and ambitions. This significant amount of funding will help smaller and regional housebuilders by providing them with the financial support necessary to deliver much needed new home”.