Homes England has been tasked with fostering a diverse and resilient housing market.

The UK government has laid out its ambitious housing agenda, aiming to deliver 1.5 million new homes this Parliament. To achieve this goal, Homes England has been tasked with driving growth in housing supply, place-based regeneration, and fostering a diverse and resilient housing market. For SME house builders, lenders, and custom build enabling developers, this signals new opportunities and pathways for growth. Read the full letter here.  https://assets.publishing.service.gov.uk/media/66faac3ee84ae1fd8592eb67/Homes_England_Chair_s_Letter.pdf

New Support for SME House Builders

The recent letter from the Minister of State for Housing and Planning to Homes England sets a clear direction for supporting the growth of the SME house building sector. Specifically, it directs Homes England to play an expanded role as a master developer, aimed at accelerating the development of stalled projects and providing better access to funding and land. This emphasis on market diversification is good news for smaller builders seeking support in a challenging financial landscape.

With an increased focus on enabling SMEs to access sites and funding, Homes England will use its powers to facilitate development and provide direct support to projects that can deliver housing quickly. This includes leveraging its compulsory purchase powers when necessary, which could make it easier for SME builders to acquire land that would otherwise be challenging to develop.

Funding Flexibility and Opportunities for Lenders

For lenders like Assetz Capital, this renewed focus means more opportunities to partner with Homes England and participate in delivering much-needed homes. To support developers and drive new building, we recently launched our new development finance pricing, from 9.35% as well as providing 24 hour, credit backed offers. As we understand that cashflow at the start of a project is vital, we also recently brought to market our higher, day-1 cash advances.        

Homes England will also explore greater financial flexibilities through the Treasury, potentially involving more joint ventures and equity investments. These efforts could reduce risks for both builders and lenders, providing a more secure environment for financing housing projects.

Moreover, institutional investors are being encouraged to participate, creating co-investment opportunities that can help expand funding for SMEs. The government’s push to ensure Homes England maximises value for money also suggests that efficiency improvements and a strong focus on cost-effectiveness will underpin future partnerships.

Boost for Custom and Community-Led Housing

The government’s emphasis on custom and community-led housing projects is another significant highlight for developers involved in bespoke housing solutions. Homes England is expected to work towards promoting self-build and community housing, giving custom builders greater access to the tools and resources they need to scale their projects.

The aim is to foster community-focused neighbourhoods, which means that bespoke housing solutions aligned with mixed-tenure developments will be well-supported.

As a master developer, Homes England’s role will be to open up access to land and accelerate timelines, making the environment for custom build enabling developers much more accommodating.

A Partnership for Growth

With Homes England now at the forefront of this ambitious housing drive, the message is clear: SME house builders, their lenders, and custom build developers are central to achieving these targets. As a leading lender to SME house builders, Assetz Capital remains committed to partnering with developers who are ready to grasp these opportunities, helping to bring much-needed homes to the UK market.

Together, let’s build a stronger, more diverse housing market for the future.

If you have a upcoming development project, we could support you with funding from just 9.35% p.a.

Why not call our New Business Team on 0800 470 0430?

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