Britain's need to build more houses is well documented. Less well discussed is the role smaller housebuilders can contribute to this challenge as compared to larger developers. In the last ten years, the proportion of projects completed by those outside of the top ten largest developers has fallen from 73 per cent to 53 per cent. While this has happened for a number of reasons, the finance industry has significantly stepped up its support for this sector in response.

Today, UK Finance launches a new guide to development finance for this group, which has been co-authored by the Federation of Master Builders. This is intended to be a helpful tool for smaller housebuilders when considering factors related to applying for development finance - both how and when to apply as well as what to consider if turned down by your lender. We continue to see many SME housebuilders only applying to one lender (often their main bank), and then giving up if turned down. The reality is that this is a very competitive market, with a number of high-street, challengers, smaller banks, and non-banks all seeking good, viable applications to lend to.

We have also witnessed a series of public-private partnerships which are focusing on unlocking funds for SME housebuilders. These include the Housing Growth Partnership between Lloyds Banking Group and Homes England, which ?partners with proven small housebuilders and developers who are developing, on average 5-175 units per year and that have a passion and desire to grow?. Recently, Barclays has also announced a £1 billion housing development fund - the Housing Delivery Fund - in conjunction with Home England which will provide loans of between £5m and £100m to borrowers able to demonstrate a track record, who are looking to accelerate the progress of house building in the UK.

Another important change we need to work together on is ensuring that SME housebuilders approach lenders at the right time. At a too early stage (i.e. pre-land purchase, pre-planning permission and without sufficient own-funds), lending ability will be significantly lower. Thinking through where finance sits within the wider plan is critical, which we hope this Guide will assist with.

We are pleased the Guide has been endorsed by both Kelly Tolhurst, the Small Business Minister and Kit Malthouse MP, Minister of State for Housing. Our ongoing work with the FMB and government will, we hope, led to continued conversations in addressing the challenges for SME housebuilders and responding with practical action to ensure that this group can contribute as fully as possible to building homes across Britain.

UK Finance's Guide to Development Finance for Small and Medium Size Housebuilders will be launched at the FMB Conference in Chelmsford on 5th October.