The British Business Bank has added to an existing ENABLE Build Facility to United Trust Bank (UTB) increasing the amount by £100 million. Now, the total facility is at £350 million.
According to the British Business Bank, UTB has now provided £830 million to smaller homebuilders through the program and the additional capital is expected to support 3,800 new homes across the country.
The ENABLE program was designed to support smaller homebuilders which may struggle to access financing. The goal is to reduce risk for banks and thus encourage private lending to homebuilders in a market that has struggled with a gap between housing supply and demand.
Reportedly, UTB topped £3 billion in loans to builders/developers in October.
Managing Director, Guarantee and Wholesale Solutions, British Business Bank, Reinald de Monchy, said the additional funding will deliver new homes while creating more jobs for the UK economy.
Adam Bovingdon, Head of Property Development, UTB, said:
“UTB is committed to supporting the resurgence of the SME housebuilding sector and this additional £100m guarantee will be set to work straightaway.”
