Lenders and brokers are calling on the government to do more to support SME housebuilders to ease the UK’s supply crisis.
The Intermediary Mortgage Lenders Association found that 61% of lenders and 57% of brokers think government support for development finance would improve the lack of housing supply.
Peter Williams (pictured), IMLA’s executive director, said: “The mortgage industry clearly feels that supporting development finance lending to SME builders and developers would help increase in housing output.
“Successive governments have struggled to meet housebuilding targets, and the lack of solutions offered by the incumbent government in its Housing White Paper shows there is a need for new ideas.
“IMLA is therefore calling on policymakers to explore how they can boost development finance lending.”
IMLA suggested introducing a scheme that guarantees loans to SME builders because 44% lenders see the risk of builder default as a key problem.
Another suggestion was boosting lending to developers via the British Business Bank, a state-owned economic development bank.