The British Business Bank has channelled more than £2.3 billion into the UK’s construction and real estate sectors through its ENABLE structured guarantee schemes, in a significant effort to support SME housebuilders and diversify housing supply.
The landmark figure includes £1.7 billion for construction businesses and £655 million for real estate firms via the ENABLE Guarantees and ENABLE Build programmes.
Together, the initiatives have backed over 1,000 smaller businesses and enabled the construction of 5,866 new homes across the country.
The milestone comes as total lending through the ENABLE structured guarantee programmes surpassed £5 billion, with more than £3 billion flowing to businesses outside London and the South East.
FUELING GROWTH
Each of the North West, East Midlands and East of England has received around £500 million, reinforcing the Bank’s mandate to improve access to finance and fuel regional growth.
Michael Strevens, Managing Director for Structured Financial Institutions at the British Business Bank, says: “The volume of lending to smaller businesses and the number of new homes enabled is incredibly rewarding. Housing supply remains a key national priority and we’re proud to support the sector through a strong collaboration with lenders.”
Launched in 2017, the ENABLE programmes offer government-backed guarantees on loan portfolios, allowing both banks and non-bank lenders to reduce risk and extend credit to SMEs that might otherwise struggle to access finance. The model is seen as a scalable solution to market inefficiencies in business lending.
PUBLIC-PRIVATE COLLABORATION
United Trust Bank (UTB), an early adopter of both ENABLE Guarantees and ENABLE Build, has alone delivered nearly £1 billion in lending through the schemes, supporting around 4,700 new homes via 450 loan facilities.
Adam Bovingdon, Head of Property Development at UTB, says: “ENABLE is an excellent example of public-private collaboration. It has helped SME developers navigate an exceptionally turbulent period, including the Covid-19 pandemic, and continue delivering vital new housing.”
The construction and real estate sectors are the largest beneficiaries of the ENABLE programmes to date, underscoring their strategic importance to the UK economy.
The retail sector follows with over £800 million in support, while financial services and insurance have received £350 million since 2017.
Brian Berry, Chief Executive of the Federation of Master Builders, adds: “Financing remains one of the biggest barriers facing small developers. ENABLE Build is helping to diversify the market – a crucial step if the government is serious about meeting its 1.5 million homes target.”
