Over half of development finance brokers have no knowledge of the Government’s Builders Finance Fund initiative, according to a survey by United Trust Bank...
The £525m fund was designed to address the troubles faced by housebuilders and small developers trying to access finance, and to help speed up housing developments which had stalled.
Brokers who were aware of the scheme were still sceptical about the impact it would have on UK housing shortage, with 30% saying it would be of little or no help.
Noel Meredith, Executive Director at United Trust Bank, felt the lack of publicity around the launch of the fund meant many brokers were left uninformed of the scheme.
“Like many people in the development finance industry, I’m yet to be convinced that the BFF will really provide support to true SME builders,” said Noel.
“My fears are that little of the £525m funding available will end up with the housebuilders who really need it.”
Noel said the shortlist of bidders for funds contained a number of major house builders which didn’t fit with the public’s view of SME housebuilders who needed government assistance.
Sceptical of the Builders Finance Fund, Noel said there was a lot developers and brokers could do to increase their funding, such as using a development finance lender.
“Speaking for United Trust Bank, I can say that we have continued to increase our lending to SME developers by funding a variety of projects on sites around the country,” said Noel.
“Brokers can be of great value to developers in helping them to choose the most appropriate lender or lenders to approach and helping them to compile a professional and compelling proposal.
“If a developer can demonstrate that they have done their homework, fully considered the viability of what they’re proposing and are capable of delivering a successful development then specialist lenders like United Trust Bank will be very happy to talk to them.”
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