There has always been a tight competition between smalltime and big-time companies everywhere and the world of house building and home designs is no exception. In the house building industry, small house builders and large construction companies are battling it out to build houses for the people, especially their clients, with great home designs.
Unfortunately for the smaller firms, bigger companies tend to enjoy more privileges as their names are more trusted by many banks. Because of this, small house builders are straggling in their fight to keep up with much larger companies.
Banks are proving more to difficult to approach as they have become more reluctant to lend smaller house builders with integral funds. This issue with small house builders has existed since the 70s and up to this day, it is still a wide problem in Britain.
According to a review on UK housing, only 27 percent of the total home constructions made have been conducted by small companies which as largely much lower than it was back in1977 when it was at 58 percent.
The large decline of small companies is mainly because of the reluctance and the unwillingness of many banks to lend them funds. This has also been proven and argued by the National Housing Building Council or the NHBC.
The NHBC has also reported that their membership is at an all-time low with only 3,000 members as compared to the 12,000 members they have had back in 1980. This fact can be blamed on the lack of profits which prompted the decrease of small companies.
In October last year, Chancellor of the Exchequer George Osborne was lobbied by The Home Builders Federation to use his budget to help small companies and speed up the planning system although it is still unknown whether house builders were a part of his budget speech.
Although many banks have been reluctant to lend many small companies funds, there are some like Lloyd that had come to help the struggling smaller house builders. In fact Lloyd had even dedicated a £50m fund to assist small house builders. Santander too had done the same by dedicating £100m assistance to small house builders.