Developer Financing News:- Housebuilders have launched a campaign to attract 49,000 young people in the next few years to fill the shortfall when the UK leaves the European single job market next year.
The Home Builders Federation, HBF, has calculated this is the level of new recruits needed to enable the sector to hit the government target of 300,000 new homes a year.
Housing minister, Christopher Pincher, has backed the campaign announcing an increase in annual apprenticeships starts to 25,000 and pledging £3bn of match funding for SMEs who offer quality training.
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| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
“Our message to school leavers and those considering a career in the home building industry is clear: if you want to master a trade, have financial stability and access to a wealth of exciting jobs across the country, look no further than the home building sector,” he said in the forward to the HBF’s Building a Future: Opportunities in Home Building report.
The trade body estimates 145,000 construction workers, nearly a third of the workforce, are set to retire over the coming years. It calculates 8,000 new recruits are needed for every 10,000 new homes built and over three jobs are supported or sustained for every new home built.
Building industry offers diverse job prospects
HBF managing director, Neil Jefferson, said with the increasing demand for housing, it was vital the sector continued to attract a broad range of entrants.
“The industry requires an extensive and varied mix of skills: From identifying the land needed for the creation of new communities, to the design and architecture of buildings, through to the engineering, construction and sale of new homes, there are opportunities for people of all backgrounds and talents to develop a rewarding career in the industry.”
Developer Financing by HZA
Brokers Hank Zarihs Associates said property development funding depended on ensuring housebuilders had access to the right mix of people to deliver a project. It added ensuring a steady supply of new skilled workers was essential for building new high-quality homes.
The Federation of Master Builders, FMB’s trade survey for the fourth quarter of 2019 showed 54 per cent of SMEs were struggling to hire bricklayers with 53 per cent finding it difficult to source joiners.
Housebuilders will no longer be able to employ EU nationals without the new points-based visa scheme from June 30, 2021. The FMB has called on the government to amend the system so construction workers of all skills can still come to the UK. Chief executive, Brian Berry, has described it as unrealistic to expect the domestic workforce to fill the shortfall.