According to the Federation of Master Builders (FMB), the SME house building sector could deliver an additional 20 000 homes per year if their access to finance was improved, putting a significant dent in the UK’s housing supply requirements.
In its Budget submission, FMB has called on the Chancellor to improve access to finance for SME house builders, which have consistently cited this as their primary barrier to building more new homes.
Estimates by FMB members suggest that, output from SME house builders would increase by as much as 100% if the loan to project value ratios on offer were improved to 80% from a standard 60%. Based on recent housing statistics, this could equate to almost 20 000 new homes being built, making a significant impact on the supply side gap in the UK housing market.
As part of the FMB’s submission to the Chancellor, it has also called on Government to designate our existing homes as a national infrastructure priority. Necessary measures include the reduction of VAT on housing renovation and repair from 20% to 5% and utilising carbon taxes to fund energy efficiency improvements.
Adapted from press release by Joseph Green