Homes England launches £250m SME housing fund
Homes England and United Trust Bank have unveiled a £250m Housing Accelerator fund, dedicated to small and medium residential developers.
The Housing Accelerator Fund will provide construction finance, with loans of between £1m and £10m. The five-year facilities will be available for up to 70% of gross development value.
In the wake of the pandemic, a number of smaller alternative specialist funds have launched SME products. Paragon Development Finance this week announced a sub-£1m development finance offering targeting small businesses. It follows similar moves from Zorin Finance and Pollen Street Capital and Downing.
Homes England and United Trust Bank have unveiled a £250m Housing Accelerator fund, dedicated to small and medium residential developers.
The Housing Accelerator Fund will provide construction finance, with loans of between £1m and £10m. The five-year facilities will be available for up to 70% of gross development value.
In the wake of the pandemic, a number of smaller alternative specialist funds have launched SME products. Paragon Development Finance this week announced a sub-£1m development finance offering targeting small businesses. It follows similar moves from Zorin Finance and Pollen Street Capital and Downing.
Gordon More, chief investment officer at Homes England, said: “In line with Homes England’s commitment to support SMEs, [the fund] will help smaller builders get on and build now, as well as improve the lending landscape for SMEs by driving competition in the market, improving choice and encouraging innovation.”
Housing minister Christopher Pincher added: “It is a top priority for this government to build the homes this country needs, and it is vital for our economic recovery that we support as many as possible within the housebuilding industry to deliver these homes.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
Image © General Images/UIG/REX/Shutterstock
