Home Building Fund extended

The Home Building Fund for SMEs has been extended beyond March next year, with up to £700 million available to support the delivery of around 12,000 additional homes.

The Ministry of Housing, Communities and Local Government (MHCLG) said it had committed to providing ongoing funding for SME housebuilders, allowing them to “play a crucial role in the government’s Plan for Change to build 1.5 million new homes over five years”. The fund had been due to close to new business on March 31 2025.

The Home Building Fund, managed by Homes England, provides a range of financial support for smaller housebuilders in England struggling to access finance from traditional lenders, including direct loans and lending partnerships.

MHCLG has increased the amount of cash available; it said the extra homes this would support was in addition to the 42,000 homes the fund was set to deliver.

MHCLG noted that access to credit continued to be a “key constraint” for SMEs, with its “intervention” helping to remove barriers to homes delivery.

The Budget also included support for SMEs, through £3 billion in housing guarantees which adds to existing schemes.

On November 27, MHCLG opened the scheme which …