Last edited 05 Jul 2016

Builders finance fund

Contents

[edit] Introduction

The Builders Finance Fund was created in April 2014 with the aim of assisting smaller housing developers in England. The fund has been extended for housing schemes of between five and 250 homes. A total of £525 million has been set aside to help promote development. The purpose is to assist developments that have temporarily stalled due to financial issues.

The fund operates by making a direct investment as a loan to assist cashflow problems or by taking an equity share. Investments are made over a two year period from 2015/16 to 2016/17.

[edit] Eligibility

The factors that are taken into account to determine eligibility include:

[edit] Application process

Bids can be submitted using the online Expression of Interest form. The Homes and Communities Agency will consult with local authorities to determine their opinion on the proposal.

The Homes and Communities Agency and the Greater London Authority (GLA) will make decisions on the shortlist and undertake due diligence, contracting and monitoring on proposals.

Following the successful passing of the due diligence stage, the project will achieve formal investment approval and negotiate on the contract terms before investment.

A number of reporting obligations will be detailed within the contract to allow for monitoring of investments.

[edit] Further information

The Department for Communities and Local Government have produced a prospectus with detailed information about the fund.

In October 2015, the BBC reported that of the £525m funding available, just £1m had been allocated, with just 2 projects having received awards. The fund is due to close in 2017.

[edit] Find out more

[edit] Related articles on Designing Buildings Wiki

[edit] External references