Under-supply of housing

How do we address it?

The current Conservative Government of 2018 was elected with a manifesto pledge to meet the 2015 commitment to deliver 1 million homes by the end of 2020 and to “deliver half a million more by the end of 2022.”

In September 2018, the House of Commons released a briefing paper which stated that according to current projections, an average of 210,000 new households will form in England in each year between 2014 and 2039. In 2016/17, the total housing stock in England increased by approximately 217,000, which was 15% higher than the previous year’s increase but short of the estimated 240-250,000 new homes needed to keep pace with household formation.

Our role

Improving the housing crisis

In October 2018, we announced the launch of an ENABLE Guarantee with the government-owned British Business Bank (BBB), designed to boost the UK SME housebuilding sector. It encourages banks to increase their lending to SMEs by reducing the amount of capital required to be held against such lending. This allows the UK Government to take on a portion of the counterparty’s risk on a portfolio of loans to smaller businesses in return for a fee.

This partnership was forged to address the issue of high capital requirements associated with small business finance, which restricts banks’ ability to lend to SMEs. The transaction enables us to support the building of new housing to the value of over £500m.

Greg Clark, Business Secretary

“The UK’s 5.7 million small businesses are the backbone of our economy. Through our modern Industrial Strategy and the Construction Sector Deal, the British Business Bank is supporting small businesses in the housebuilding sector to access the finance they need to maximise their potential, grow and boost the number of homes built.”

How can we help

For SME housebuilders

This initiative demonstrates our commitment to the property development sector by helping SME housebuilders make the most of the opportunities available to them.

Our development finance division are dedicated to delivering creative and customised financing solutions to experienced property professionals across the UK, all centred on a traditional relationship-based approach to banking.

Contact HTB’s development finance team on 020 7862 6278 or email us. We are open 9am to 5pm Monday to Friday, excluding bank holidays.

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