Loans ranging from £5m to £100m will be made available to developers able to demonstrate the experience of, and commitment to building quality homes on time and on budget. The scheme will be overseen by Homes England.
The Housing Delivery Fund loan scheme is designed to break the oligopoly of the top 10 house-builders who currently build almost two-thirds of new homes built in the UK.
It will be available for all tenure types, including social housing, retirement living and apartments for rent.
Housing secretary James Brokenshire said: “My priority as housing secretary is to get Britain building the homes our country needs. 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.
Barclays chairman John McFarlane 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.”
Homes England chairman Sir Ed Lister said: “Homes England has been established to play a more active role in the housing market and do things differently to increase the pace, scale and quality of delivering new homes. 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.”