Homes England nearly doubles development fund for SME builders

In 2020, Homes England announced a seven-year partnership with development finance lending platform Invest & Fund to increase the amount of finance available to SME developers.

The collaboration created a £25m revolving fund to give small builders construction loans of up to £2.5m, funding schemes of two homes and upwards, at up to 80% loan to cost.  

Along with the new funding available, the refinanced agreement will extend the term of the fund to March 2030 and continue to focus on supporting micro-SMEs.

Marcus Ralling, chief investment officer at Homes England, said: “Small and medium house builders 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, chair at Invest & Fund, said it was “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”.

This latest funding deal by the government’s housing and regeneration agency comes after it announced last month that it had agreed a new £250m joint venture with a US investment firm and a London-based developer to acquire sites for housing across the country.