Builders Back Finance Scheme Change

Published

9th December 2013

Federation of Master Builders supports adjustments to the Funding for Lending scheme to better support small businesses, but the Government must also stand behind its Help to Buy scheme and find new ways to incentivise more house building, they say.

Brian Berry, Chief Executive of the FMB, said: “Our members have been telling us for some time that the Funding for Lending programme has serious flaws, and that the banks remain reluctant to lend to them. In fact small construction firms report that access to finance is the single greatest barrier they face when attempting to grow their business. Construction companies need to able to secure financing to respond to increasing demand, which is beginning to improve thanks to enhanced consumer confidence and the Help to Buy scheme bringing vitality back into the housing market.”

Berry continued: “By rolling back the portion of guarantees aimed at shoring up individual mortgage lending and concentrating instead on backing loans to small businesses, we hope our members will now see strides forward on the part of lenders when it comes to financing the resurgent construction sector.” 

Berry concluded: “Reforms to the planning system and the removal of barriers to smaller developers and house builders are also key, as we are still not building anywhere near enough new homes to keep up with rising demand.”

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