Barclays has teamed up with Homes England to offer smaller house builders access to a £1bn pot of loan finance to tackle England’s housing shortage.

Housebuilders are finally getting some respite from a crushing year of diminished demand, a prolonged skills shortage, and Brexit anxiety. This new housing fund could recover some of the financial strength that was lost when Carillion collapsed back in January. Other issues such as cold weather and consumers’ frivolity have also taken their toll on the cash flow of construction firms across the UK.

The road to finance has undergone a transformation in recent years. Bank loans are no longer the presumed preference, with alternative finance platforms, such as crowdfunding, rising in popularity. These options are not always fair on the business owner, however, and many have awaited government intervention.

The government has not always been successful in their interactions with the construction industry. Contractors’ financial struggles have been predominantly been caused by late payment, but the government’s Prompt Payment Code did little to relieve the strain.

This new collaboration with Barclays could bring more success, with loans ranging from £5 million to a maximum ceiling of potentially £100 million. This could shake-up the industry, providing a lucrative opportunity to firms who have the necessary experience and track record.

Most excitedly, this new fund will focus on small and medium-sized businesses. These enterprises have historically struggled with low demand and competed desperately with their larger counterparts. Housing Secretary Rt Hon James Brokenshire called the fund an “important step” in giving smaller builders access to finance and getting expansion projects off the ground.

Innovation should be the priority of all businesses and business sectors, particularly as the Brexit deadline edges ever closer. The reality of achieving this has always been a bit more complex for small businesses. This new housing fund, however, could be an exciting next step for the country’s SMEs, giving our international rivals something to talk about.


Housing Secretary Rt Hon James Brokenshire, said: “My priority as Housing Secretary is to get Britain building the homes our country needs. This new fund – partnering Homes England with Barclays – is a further important step by giving smaller builders access to the finance they need to get housing developments off the ground.

‘This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”

Of course, this fund will not be available to everyone, with those lacking the required credentials sent back to the starting line. This should not prompt those unlucky few to abandon expansion projects, with different avenues still to try.

This is when the Credit Protection Association really comes into its own. The debt recovery service at CPA has helped many business owners accomplish their expansion aspirations. The service recovers unpaid invoices, freeing up cash flow that our Members use to invest in new technology and renovation. CPA is not just merely a business lender, additionally providing our Members with credit monitoring facilities. Credit reports, credit rating information and County Court Data consequently protect our Members from adversaries such as late payment and anything else that would derail their new success.

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
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The Latest Insolvencies to 13 Sep 2018

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