Editor: Before the pandemic, housebuilding delivery was already running way behind the government’s ambitious targets. Between April 2019 and March 2020, around 244,000 homes were built in England – the highest number since 1987 and around 1% higher than in the previous year, but still lower than the estimated need.
Unfortunately, the situation does not look as though it is going to improve any time soon. According to a 2020 study by Savills and Shelter, more than 300,000 planned new homes may remain on the drawing board over the next five years as a result of Covid, equivalent to the government’s annual homes target. So, how do we fix our broken housing market?
I believe a big part of the solution may be closer to home than we realise – in the fintech sector, where Britain already plays a leading role on a global scale.
One of the key hurdles to building more homes is the inability of many SME developers and small construction companies to unlock much-needed funding, and fintech has proved itself to be an effective solution to helping smaller developers access funding.
The use of technological solutions by incumbent financial institutions and specialist non-bank lenders delivers better, faster and more effective financial outcomes to customers, especially SMEs.
Looking ahead, financial services, especially agile and nimble incumbents leveraging the power of technology and fintech, have a potentially critical role to play in helping deploy the financing to help build much-needed homes.
Roxana Mohammadian-Molina, chief strategy officer, Blend Network
No comments yet