Homes England and United Trust Bank have announced a £250m fund to support small- and medium-sized builders with development finance at up to 70 per cent loan-to-gross-development value.
The fund will provide construction loans of between £1m and £10m.
The partnership between the specialist lender and Homes England seeks to improve access to finance for SMEs, with applications open immediately.
Gordon More, chief investment officer at Homes England, said: “The Housing Accelerator 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.”
United Trust Bank’s executive director, Noel Meredith, said: “This alliance will help to reinvigorate and increase diversity in the SME housebuilding sector, and boost housing supply in areas under the greatest affordability pressures.”