Homes England and Invest & Fund help finance 600 more homes
Homes England and Invest & Fund have expanded their lending alliance to facilitate the construction of an additional 600 new homes, building on the 107 homes already supported through the original lending alliance.
The expansion is part of the partnership’s commitment to supporting SME developers as part of the government’s plans to deliver 1.5m new homes over the next five years.
The partnership will now offer development loans of up to £4m, at a maximum 70% loan to gross development value and maximum 85% loan to cost.
Homes England and Invest & Fund have expanded their lending alliance to facilitate the construction of an additional 600 new homes, building on the 107 homes already supported through the original lending alliance.
The expansion is part of the partnership’s commitment to supporting SME developers as part of the government’s plans to deliver 1.5m new homes over the next five years.
The partnership will now offer development loans of up to £4m, at a maximum 70% loan to gross development value and maximum 85% loan to cost.
In 2020, Homes England 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 £25m revolving fund to support small builders with construction loans of up to £2.5m, funding schemes of two homes and upwards, at up to 80% loan to cost.
The refinanced agreement will increase the fund from £25m to £47.5m and extend the term of the fund to March 2030.
Marcus Ralling, chief investment officer at Homes England, said: “Small and medium-sized 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 are providing sustained, long-term support to help SME developers grow and deliver more homes at pace.”
Robert Burgess, chairman of Invest & Fund, said: “Invest & Fund is 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.”
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