British homebuilder Barratt said on Monday it has entered into a joint venture with Lloyds Banking Group and government body Homes England to focus on developing large sites.

WHY IT'S IMPORTANT

The interest rate cut last month, the first in the UK in more than four years, was seen as a near-term boost for the housing sector, where affordability concerns have forced builders to slash homebuilding targets and warn on profits.

With supportive policy, the homebuilders can help the government tackle the country's perennial housing crisis as aggressive planning reforms are expected to boost land supply.

CONTEXT

Britain's ruling Labour Party aims to build 1.5 million homes before the next election and develop underused areas like car parks and green spaces with low environmental value, marking a significant shift from previous policies.

KEY QUOTES

"A failure to ensure the development system is working properly has held back the delivery of tens of thousands of new homes over recent years and this Government will work in partnership with all those who are focused on turning things around," said UK housing and planning minister, Matthew Pennycook.

WHAT'S NEXT

Barratt said the partnership, called MADE Partnership, will act as master developer for multiple large-scale, residential-led developments from 1,000 to more than 10,000 homes in both new and existing communities.

The partnership will initially be backed by combined equity funding of up to 150 million pounds (about $197 million). ($1 = 0.7629 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza)