UTB and Homes England launch £250m Housing Accelerator Fund

United Trust Bank (UTB) and Homes England have today (16th February) announced a £250m fund to support SME builders with development finance at up to 70% LTGDV.

The Housing Accelerator Fund — a five-year lending alliance between UTB and Homes England — will provide construction loans between £1m and £10m.

Applications are being accepted from today and prospective borrowers should contact UTB.

Noel Meredith, executive director at UTB, said: “SME housebuilders have a vital role to play in delivering the UK’s new housing needs and UTB has amassed considerable experience helping such businesses to complete thousands of successful developments. 

“This is an exciting new partnership with Homes England which will make a real difference to both long-established and newly-formed development companies requiring competitive funding and the long-term support of a knowledgeable and experienced specialist lender. 

“This alliance will help to reinvigorate and increase diversity in the SME housebuilding sector and boost housing supply in areas under the greatest affordability pressures.”

Gordon More, chief investment officer at Homes England, commented that the fund would help smaller builders get on and build now, as well as improve the lending landscape for SMEs by driving competition in the market, advancing choice and encouraging innovation.

“UTB has consistently supported housebuilders of all sizes and is an experienced and capable lender; we’re pleased to be collaborating with them on this long-term partnership and look forward to seeing the fund support the delivery of new homes across the country.”

Housing minister, Christopher Pincher, added that it was a “top priority” for the government to build the homes the country needs, and described the alliance between Homes England and UTB as a “win-win”. 

“It will not only support our commitment to build more homes, but also give smaller developers easier access to finance,” he stated.

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