UTB secures guarantee to support SME house-builders

Ciaran Murray

United Trust Bank (UTB) has secured an ENABLE Build guarantee to support SME housebuilders across the UK.

The new guarantee, secured via the British Business Bank, is the first to be issued under the ENABLE Build programme and will allow UTB to increase the amount of development finance it provides to UK SME housebuilders.

Over the lifetime of the £250m guarantee, it is expected to help support the construction of more than 2,700 units of new housing through the provision of more than £500m of funding to SME housebuilders.

The new guarantee follows UTB’s previous ENABLE Guarantee which to date has helped support the construction of more than 1,800 units and provided more than £340m of funding to SME housebuilders.

The ENABLE Build programme is designed to encourage additional lending to smaller housebuilders by reducing the amount of capital required to be held against such lending by the participating bank. Under both the ENABLE Guarantee and ENABLE Build programmes, the UK Government takes on a portion of the lender’s risk on a portfolio of loans to smaller businesses, in return for a fee.

Harley Kagan, chief executive of United Trust Bank, said: “Many SME housebuilders rely on specialist lenders like UTB to access the funds they need to keep building and growing.

“This ENABLE Build guarantee will help us to increase our ability to support the SME housebuilding sector.

“The previous guarantee contributed to the construction of around 1,800 new homes by SME housebuilders and ENABLE Build will allow UTB to go even further. The programme is another great example of the positive impact specialist banks and government agencies can have when they work together to achieve a common goal.”

Reinald de Monchy, managing director of guarantee and wholesale at the British Business Bank, added: “We are very pleased to announce our first ENABLE Build transaction, continuing support for smaller housebuilders to gain access to the finance they need.

“The ENABLE Build guarantee will help UTB provide the extra finance that smaller housebuilders require to allow them to grow, succeed and build, while diversifying the housing market and delivering thousands of homes and jobs in the process.”