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Much needed financial boost for UK small home builders

The construction industry in the UK is a vital component of the UK’s economy but it has been going through difficult times recently, particularly hard hit are the smaller builders. This sector is not able to call upon huge cash reserves to see it through so it was welcome news to them that small house builders in the UK are to benefit from a £100 million cash boost to recognise and support their important role in keeping the country building.

The welcome news was announced by Housing Minister Brandon Lewis, when he said that the financing would be through The Housing Growth Partnership and that they will provide money to small builders to support their businesses. This would get workers onto building sites as well as increase the number of home being built.

The number of smaller firms involved in building new homes has fallen dramatically in the last 25 years. Figures show that those building between one and 100 units a year has fallen from over 12,000 to a low figure of just 3,000. The good news is that new house building starts has doubled since 2009 and Housing Minister Lewis is keen for smaller firms to be involved in this.

The finance for this new initiative is being provided jointly through the government and Lloyds banking group each investing £50 million creating the Housing Growth Partnership. This will be an enormous help to smaller builders, allowing them to recruit and train skilled workers which will help boost the economy and provide employment as well as becoming competitive within their own area. Finance has always been one of the major challenges facing smaller firms, so the £100 million will be a boost to fund new projects, expand their businesses, create more jobs and build more homes.

The building sector has always been an indicator of the economy, so it is hoped that this new funding can help to kick start this sector as well as providing the many new homes that the country desperately needs.

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