Homes England and Invest & Fund, a growing development
finance lending platform, have announced a significant expansion
of their Lending Alliance, reinforcing their commitment to
supporting small and medium-sized enterprise (SME) developers as
part of the government's plans to deliver 1.5 million new homes
over the next five years.
The expanded partnership will now offer development loans up to
£4 million, at a maximum 70% Loan to Gross Development Value and
maximum 85% Loan-to-Cost. The partnership is projected to
facilitate the construction of an additional 600 new homes,
building on the 107 homes already supported through the original
lending alliance.
In 2020, the Agency announced a seven-year partnership with
Invest & Fund, to increase the amount of finance available to
SME developers, helping them to grow and deliver more homes at
pace. The collaboration created a £25 million revolving fund to
enable the support of small builders with construction loans of
up to £2.5 million, funding schemes of two homes and upwards, at
up to 80% Loan-To-Cost.
The refinanced agreement will:
• Increase the fund from £25 million to £47.5 million.
• Extend the term of the fund to March 2030.
• Continue to focus on supporting micro-SMEs.
This ongoing support complements Home England's existing direct
lending offer, which provides development funding to
housebuilders building five or more homes a year and follows the
£700 million extension to the current Home Building Fund for SME
developers announced by the government last December, which will
support the delivery of up to 12,000 additional homes.
Marcus Ralling, Chief Investments Officer at Homes England, said:
Small and medium housebuilders play a vital and essential role in
driving the delivery of new homes where they are needed
most.
This refinancing demonstrates our ongoing commitment to
supporting the small builders that are crucial to building a
diverse and resilient housing sector. By nearly doubling the fund
and extending its availability, we're providing sustained,
long-term support to help SME developers grow and deliver more
homes at pace.
Robert Burgess, Chairman at Invest & Fund, said:
Invest & Fund are delighted to be working with Homes England
to support SME developers and ensure that they have access to
vital funding to deliver much needed new homes across the
country.
Housebuilders can apply for funding now by contacting Invest
& Fund directly at Alan.Fletcher@investandfund.com
About Homes England
Homes England is the government's housing and regeneration
agency. We believe that affordable, quality homes in
well-designed places are key to improving people's lives. We make
this happen by using our powers, expertise, land, capital and
influence to both – bring investment to communities and get more
quality homes built.
