15 September 2020 #Real Estate
The Government has announced a new £25m revolving fund for small and medium-sized (SME) residential developers to ‘grow and deliver more homes at pace’.
Homes England and Invest & Fund, (a development finance lender) have announced a seven-year partnership to increase the amount of finance available to SME developers.
The partnership will create a £25m revolving fund which will be used to provide construction loans of between £400,000 and £2.5m, at up to 80 per cent loan-to-cost.
Funding will be available to SME developers for projects which include at least two new homes. Applications should be made direct to Invest & Fund.
The Housing Minister Rt Hon Christopher Pincher MP has welcomed the plans and recognised that ‘building the homes the country needs is key to our economic recovery and is a top priority for the Government’ in order ‘to get Britain building’.
In particular, he acknowledged the contribution made my SME developers and the difficulties they face in accessing funds commenting: “I welcome the announcement of the partnership between Homes England and Invest & Fund – which will not only support our commitment to build more homes, but also give smaller developers easier access to finance, helping them to flourish.”
If you are an SME developer embarking on a new project our Real Estate and Construction Teams are available to offer advice and assistance.