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rumours of Get Britain Building III

There is a widely held hope that the Government will announce a new housing supply stimulus package in the Autumn Statement, as part of any efforts needed to add heft to the wider economy after Brexit. Recent efforts have focussed more on subsidising house buyers (for example by Help to Buy) so redressing the balance by reducing the cost of supply would be welcomed. 

When details are formally revealed interested parties will want to know the following: 

*grant, loan, or equity investment? Recent trends have been for HCA to act as an investor or bank would act, and focus on making a sustainable return;

*what terms apply? The State Aid rules and other legislation impedes the rates that HCA can charge on loans, and the amount of financial assistance that they can otherwise apply. There has also been a trend towards loans being very short-term;

*what security is needed? The better rates typically go to borrowers who can charge parts of their sites. complex issues can arise quite early on when parts of sites or even buildings are being funded, but because of cross rights, other lenders, or technical issues cannot be offered as security. 

At least some of it is reported to be targeted at small and medium-sized firms building new homes through modular constrction; some resources would also go into site assembly for new build schemes, and financial guarantees to developers worried about the risks of delivering big schemes”