November’s Autumn Statement saw Chancellor, Phillip Hammond announce an extra £1.4bn for 40,000 affordable homes across the UK. On 7th February, in a new whitepaper release Gov.uk promised an additional £7bn fund, comprised of the £1.4bn promised and other schemes. Housing providers will be able to apply for a share of this in order to add to the increased supply of affordable housing nationwide.
At present, it can be said that the UK housing industry is too reliant on a small number of big players, with around 60% of new homes being built by just the 10 top housing development companies. According to Sajid Javid, Secretary of State for Communities and Local Government, many small independent builders find it almost impossible to enter what is a competitive market. This lack of competition means a lack of innovation, which in turn leads to sluggish productivity growth.
In his announcement, he declared an initiative to make it easier for small and medium-sized builders to compete. This is an opportunity that many within the construction industry can take advantage of; however, a lot of businesses just don’t have the money readily available to turn this in to a reality.
In a recent survey commissioned by LDF, we discovered more about construction businesses attitude towards business finance, and the process in which it takes to get the money that they need:
Whilst 54.1% of businesses aren’t turned off by business terminology, just over a third found that the time it took to wait for approval for their business finance had a negative impact. These delays meant that business owners were unable to pay themselves, sacrificing their own salary for their staff, or even went without holidays! Of the 28% who admitted to making a poor financial decision over the last year, a quarter was due to not taking funding they needed in time, with the other quarter not taking out enough funding.
Flip your Construction business with finance
Don’t lose out on taking a much earned break due to unnecessary funding issues. Whether you’re looking to develop your construction business through marketing, recruitment, refurbishment or more; or to pay off those recurring expenses such as your Corporation Tax or VAT, LDF can provide a solution that makes money work for your business.