Property fintech firm LendInvest and government-backed British Business Bank have teamed up to provide financing to small property developers in the UK.
Aimed at smaller property developers in the UK, LendInvest’s development finance programme is aimed at bridging the housing delivery gap and reducing the housing shortage.
HSBC will contribute up to £100m to the initiative and British Business Bank will support the transaction via its government-backed ENABLE Guarantee programme.
The ENABLE Guarantee programme aims to promote lending to smaller businesses.
As part of the programme, the UK government assumes some of the risk associated with a portfolio of loans made to smaller companies in exchange for a fee.
LendInvest CEO Rod Lockhart said: “It is well known that there is an undersupply of housing in the UK and so we are delighted to partner with the British Business Bank and HSBC to unlock finance to help tackle this issue.
“The UK is a nation of homeowners without enough homes to own. Smaller property developers have a key role to play in making up this shortfall. The guarantee from the British Business Bank and the funding from HSBC, combined with our expertise in lending, is key to supporting these developers.”
British Business Bank managing director, of guarantee and wholesale solutions Reinald de Monchy said: “Unlocking finance through this facility is a great example of the difference the ENABLE Guarantee programme can make in the market. Thanks to this new partnership, LendInvest will be able to help more smaller property developers build more homes across the UK.”
Earlier this month, LendInvest secured a £120m investment from Lloyds Bank to support the launch of its homeowner mortgage offering.
