London, UK - 27 November 2024: The UK government has announced a £3 billion expansion to its housing guarantee schemes in a move aimed at tackling the nation’s housing shortage and stimulating economic growth. Housing Minister Matthew Pennycook confirmed the initiative, which seeks to support small and medium-sized housebuilders (SMEs) and the Build-to-Rent sector, as part of broader efforts to deliver 1.5 million homes over the next five years.

This financial boost will enable housebuilders to access more affordable loans by reducing risks for lenders and encouraging greater credit availability. Smaller housebuilders, often constrained by limited access to finance, are a particular focus of the scheme, with the government estimating that the increase in guarantees will deliver over 20,000 new homes.

Central to the initiative is the doubling of the ENABLE Build programme to £2 billion. This expanded funding will facilitate the construction of over 10,000 homes, including specialised housing for older residents and student accommodation in high-demand areas. In addition, the Private Rented Sector Guarantee Scheme will reopen later this year, providing nearly £2 billion to Build-to-Rent developers and enabling a wider variety of projects to progress without unnecessary delays.

Speaking on the initiative in an official press release, Housing and Planning Minister Matthew Pennycook said, “SME housebuilders and Build to Rent operators have a crucial role to play in delivering the government’s target of 1.5 million new homes in this parliament. The significant additional support provided by our housing guarantee schemes will enable them to access low-cost loans and support the building of thousands of new homes across the country”

Louis Taylor, CEO of the British Business Bank, praised the expansion of the ENABLE Build programme, saying “Unlocking finance for smaller housebuilders is more important than ever, not just to help build homes across the UK’s Nations and regions and provide people with security, but also to stimulate much-needed growth for the UK economy.”

The £3 billion guarantee package is part of a broader government strategy to accelerate housing development. Recent measures include reforms to the National Planning Policy Framework, new mandatory housebuilding targets for councils, and funding for local authorities to release housing on brownfield sites. These efforts aim to remove barriers to development, fast-track stalled projects, and ensure quality housing for diverse needs.

This comprehensive approach also includes the introduction of “brownfield passports,” which aim to expedite planning approvals for projects that meet quality standards, and the creation of a New Towns Taskforce to support large-scale housing communities of 10,000 homes or more.

Industry stakeholders have called for continued collaboration to ensure the funds reach those who need them most, underscoring the importance of SMEs and Build-to-Rent developers in shaping the future of UK housing.