It has been reported that a spokesperson for the Department for Communities and Local Government has confirmed that the new £10bn government-backed debt guarantee scheme for housebuilders will not be extended to existing developments.
The spokesperson confirmed that it would not apply to development projects that were “already committed to through existing government schemes”, and also could not be used to refinance existing debt.
Under the new scheme, providers of private rental homes will be able to raise a debt with a government guarantee if they commit to investing in additional new-build rented homes. Housing associations, property management companies and developers could all benefit from the scheme.
The creation of this debt guarantee scheme goes part of the way to implementing the proposals laid out in the recently-published Montague Review (click here for further details) and forms part of the Government’s housing plan, which was announced earlier this month (click here.)