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Briefings

Member Briefing: HCA launches the Home Building Fund

Date: 05/10/16

HCA launches the Home Building Fund

The Homes and Communities Agency (HCA) has published more details of the Home Building Fund that was announced by Communities Secretary, Sajid Javid earlier this week. 

HBF worked with officials at the HCA to help develop this new recoverable investment fund which is intended to be more flexible and dynamic than most previous government support schemes. Whilst it is primarily targeted at small and medium-sized builders, support in the form of development finance or infrastructure finance can be sought by home builders of all sizes building at least five units. Companies will be required to show that support will unlock development or speed up delivery. 

All financial support will be in the form of loans, tailored to the company, and commercial interest rates and an arrangement fee will be payable. For larger schemes with a major infrastructure requirement, additional non-financial support can be provided by the Agency. Loans can range from £250,000 to £250m with smaller loans available for schemes using ‘innovative housing solutions’ and serviced plots for custom builders. There is no definitive maximum loan per dwelling. Typically terms will be for up to five years for development finance and 20 years for infrastructure finance. 

Because the Home Building Fund aims to be more flexible and is expected to involve an ongoing relationship between builder and HCA, prior to applying for a loan companies are being encouraged to complete a short online form of five questions. The HCA then aims to be in touch within 72 hours to begin the discussion about supporting a home builder’s scheme. The enquiry form is available here

A factsheet is available here and an indication of the interest rates that will be applied to loans from the HCA can be found here

If you do pursue support from the fund we would be very keen to hear about your experience. Please do get in touch on the contact details below.

 

David O’Leary

Policy Director

david.oleary@hbf.co.uk / 020 7960 1612