The government's new £525 million Builders Finance Fund will improve access to finance for some small house builders but the minimum threshold of 15 units will exclude many small and micro-house builders, warns the Federation of Master Builders (FMB).

Brian Berry, Chief Executive of the FMB, said: "Most of our members build schemes of fewer than 15 new homes and it is disappointing that this fund will not be open to these micro-house builders. However, for those firms that are eligible to apply, it will make a significant difference to their ability to access the necessary finance to build new homes."

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Mr Berry continued: Although we support the government’s good intentions, put simply – if Ministers want to see a meaningful spike in SME house building, the 15 to 250 unit is wrong. 15 units is too high and although all support for new house building is welcome, a house builder that has the capacity to deliver 250 new homes is anything but 'small'."

(CD/MH)