THE Federation of Master Builders (FMB) has teamed up with UK Finance to publish an updated ‘Guide to Development Finance’ to encourage small and medium-sized (SME) housebuilders to build more properties.
The trade body revealed that in the 1980s, SMEs delivered 40% of UK homes, but this is now down to around 12%.
For new developers, FMB said finance to build the high-quality homes that are ‘desperately’ needed could help reverse this trend. Securing finance can often be seen as difficult for any small developer. The guide will help SMEs to understand the overview of products available to them and the process of how to apply.
Brian Berry chief executive of the Federation of Master Builders (FMB), said, “This guide, which was developed in collaboration with the Department for Levelling Up, Housing and Communities, is an important part of a small builder’s arsenal when looking to build new homes. We know that development finance has often held small builders back, with 29% of FMB members citing it as a barrier to building new homes.
“The aim is that this document helps small builders through this complex, but important part of the development process.
“This guide provides a comprehensive overview of what products are available and where to get them. If we are to deliver more homes for the nation, then small local housebuilders must have barriers removed to help them deliver and I hope this guide goes someway to aid them in this process.”
Stephen Pegge, MD, commercial finance, UK Finance, added, “Finance is a critical element when planning a small-scale housing development and lenders are committed to supporting builders access the funding they need. This guide has been created for small, local housebuilders to ensure they have the knowledge and guidance on the steps to take to get financial support.
“There are a wide range of finance options available, all of which could help builders undertake a larger project than their own cash would allow, in turn helping them to build homes and boost local economies across the country.”