‘Funding scheme’s complexity is keeping millions of pounds from builders’

The Builders Finance Fund (BFF) was launched in April 2014 to support housing projects stalled by the economic downturn. But so far, builders have claimed only £1m of the pot amid confusion over the rules and legal detail. The loans expire in March 2017.

John Painter, chair of UK200Group’s Property and Construction industry group, said: “The sector is struggling to take advantage amid complaints that the fund’s rules are too complicated and need a burdensome level of legal scrutiny.

“If the industry is put off, then the £525m may as well be £50. The value is meaningless without uptake. And it doesn’t help that the clock is ticking.”

Mr Painter, managing partner at CB Chartered Accountants, added: “Up to now, only two projects have benefited. If the Government is serious about aiding builders with this fund, then it really needs to turn it into an opportunity instead of a headache.

“While lawyers and accountants can always help navigate this issue and the broader landscape, the construction industry, at national level, must be made to feel that the measures to support it have substance. Who wants to ‘unlock’ stalling projects when fundamental doubts remain about the fund’s viability?”