Today, I am laying before Parliament a departmental minute setting out the details of a contingent liability that the Ministry of Housing, Communities and Local Government intends to take on. The contingent liability will be created by the £1billion ENABLE Build guarantee scheme.
ENABLE Build - announced at Autumn Budget 2018 and launched in May 2019 – is being delivered through the British Business Bank with the support of Homes England. Under the scheme the Ministry is guaranteeing loan portfolios of new lending to smaller housebuilders in order to encourage additional lending.
A lack of development finance has been identified as a barrier preventing smaller builders from delivering more. Through this scheme the Government will support SME housebuilders to grow and get Britain building the homes we need.
This statement has also been made in the House of Lords: