Barclays has partnered with the UK government to provide £1bn of loan finance to support small- and medium-sized housing developers.
Support ranging from £5m to £100m will be made available to developers, overseen by Homes England.
The Housing Delivery Fund will support the development of new homes, including social housing, retirement living and apartments for rent, as well as encouraging greater innovation, such as through the use of brownfield land and urban regeneration projects.
It aims to help open up the housing market; currently almost two-thirds of new homes are built by just ten companies.
Housing secretary James Brokenshire said: “My priority as Housing Secretary is to get Britain building the homes our country needs. This new fund – partnering Homes England with Barclays – is a further important step by giving smaller builders access to the finance they need to get housing developments off the ground.
“This is a fantastic opportunity to not only get more homes built but also promote new and innovative approaches to construction and design that exist across the housing market.”
John McFarlane, Barclays’ chairman, added: “There is a vital need to build more good quality homes across the country. This £1bn fund is about helping to do exactly that by showing firms in the business of house building that the right finance is available for projects that help meet this urgent need.
“We are very pleased to be working with government to get the country building more homes, more quickly.”