As the government’s housing delivery agency, we help to build the
homes needed across England and encourage innovation, both in the
kind of homes that are built and the way they are delivered.
We do this in two ways:
- by providing development finance to small and medium house
builders
- by providing infrastructure funding to support developers,
master developers and landowners
Development finance – loans
Through the Levelling Up Home Building
Fund, we will continue to provide investment directly to
developers, in the form of loans, and to specialist lenders.
Loans can start from £250,000, with house builders typically
borrowing between £2 million and £5 million. Development finance
is designed to support small and medium homebuilders that are
struggling to access development finance from the private market
and to help new entrants into the housing sector, to bolster
house building and diversify the market.
If you’re a small or medium sized house builder and
are interested in applying for a development loan, you will need
to have majority control of the site you plan to build on
and be planning to build five or more homes. Read our guidance to
find out more about whether a development loan through the
Levelling Up Home Building Fund could support you, and how to
apply.
Development finance - equity and joint ventures
In addition to providing development loans, Homes England is keen
to explore how funding from the Levelling Up Home Building Fund
can be used to develop more sophisticated financial arrangements,
such as lending alliances with the private sector, increasing the
amount of funding we are able to provide to the housebuilding
sector.
The fund also has the capacity to form joint ventures, which can
support projects to regenerate town centres and revive public
places, working with local councils, housing developers and
others.
Infrastructure finance
Through the Home Building Fund we will continue to
provide infrastructure
loans to help unlock and accelerate land for housing
development.
Many viable strategic housing sites carry substantial barriers to
building homes, despite the clear need for them. These challenges
can include substantial up-front infrastructure costs and s106
obligations that need to be spread over multiple phases before
the project reaches a positive cashflow position.
Through the Home Building Fund, infrastructure loans will be
available to help mitigate these barriers, by providing loans, up
to £250 million, to prepare sites for building and fund the
implementation of necessary infrastructure.
If you’re working on a housing development and require loan
funding for site preparation and the infrastructure needed to
enable housing to progress and prepare land for development, the
Home Building Fund could help you. To find out more about the
eligibility criteria, and how to apply, read our Home Building
Fund guidance.
