The British Business Bank (BBB) has agreed an Enable Build transaction of up to £150m with Shawbrook to raise the amount of development finance it provides smaller housebuilders.
Over the lifetime of the facility, this is expected to support over £300m of finance through Shawbrook to develop homes across England and Wales.
Shawbrook has surpassed £2bn of lending to UK property developers to fund the creation of more than 8,000 new homes.
The Enable Build programme aims to encourage additional lending to smaller housebuilders in the UK. The programme is open to UK incorporated banks, UK branches of foreign banks, and asset and asset-based finance providers, as well as other categories of lenders that provide or intend to provide development finance to smaller housebuilders operating in the UK.
This transaction has seen Shawbrook become the third delivery partner for the programme, which was expanded from £1bn to £2bn in the Autumn Budget.
Michael Strevens, head of structured guarantees at BBB, said: “The government’s recent expansion of Enable Build significantly increased the programme’s capacity, and this transaction with Shawbrook continues that momentum.
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“We’re delighted to partner with Shawbrook as the third delivery partner for the programme, and look forward to the initial £150m unlocking more finance for smaller housebuilders to build homes across England and Wales in 2025 and beyond.”
Simon Knowles, senior director of development finance at Shawbrook, added: “Partnering with the British Business Bank on the Enable build scheme is a fantastic opportunity to grow our support for housebuilders.
“Shawbrook has a proven track record of supporting SME housebuilders, who are vital in helping meet the ever-growing demand for new homes. This partnership will strengthen the support we can offer across the UK.”
