London (Parliament Politics Magazine) – Barratt and Lloyds Banking Group have undertaken a £150m joint venture with the government body Homes England that will conduct to the UK’s largest housebuilder and mortgage provider capitalising on Labour’s objectives to build 1.5m new homes.
The combined venture, comprehended as the MADE Partnership, will manage multiple large-scale schemes, including town extensions, new garden village-style communities and brownfield developments, each consisting of 1,000 to 100,000 homes and community buildings.
The government’s housing and regeneration body, Homes England, expressed the partnership would “ have the finance, tools, expertise and partners required to ensure a cohesive approach to delivering a fabulous place that people want to live and work”.
How Does the Government’s 1.5m Homes Target Align with Barratt and Lloyds’ Plans?
The venture will initially be supported by up to £150m in funding, delivered by Barratt, Homes England and Lloyds, which will hold equivalent equity stakes. While MADE – whose name comes from an abbreviation of master developer– has been depicted as a “long-term partnership.” However, a representative for MADE said the first development would be revealed within the next month, and that the venture planned to operate for “20 years or more”.
The joint venture arrives as the UK government tries to achieve its plans to build 1.5m new homes over the next five years, to manage the UK’s housing crisis. Ministers have promised to reintroduce mandatory housing targets and take quick action to clear bureaucratic backlogs to increase housebuilding, as part of a wider overhaul.
How Will Labour’s Planning Reforms Impact Barratt and Lloyds’ Housing Initiatives?
Housebuilders and mortgage providers across the UK are ready for a boom in home construction across the UK, and Barratt stated last week that the Labour government’s planning reforms could boost activity across the industry.
The housing and planning minister, Matthew Pennycook, stated: “A failure to ensure the development system is working properly has held back the delivery of tens of thousands of new homes over recent years and this government will work in partnership with all those who are focused on turning things around.
“The landmark new partnership announced today will support our commitment to ramp up housing supply and boost economic growth by developing more large-scale, attractive and sustainable places across the country with the homes, jobs and infrastructure that communities need to thrive.”