Homes England and Invest & Fund, a leading development finance platform, have announced the expansion of their Lending Alliance to further support small and medium-sized enterprise

(SME) developers. This initiative aligns with the government’s target of delivering 1.5 million new homes within the next five years.

Under the expanded partnership, SME developers can now access development loans of up to £4 million, with a maximum Loan to Gross Development Value of 70% and Loan-to-Cost of 85%. This extension is expected to enable the construction of an additional 600 homes, adding to the 107 homes already built under the initial alliance.

The collaboration began in 2020 with the creation of a £25 million revolving fund aimed at increasing financing options for SME developers. Through this partnership, developers were offered loans of up to £2.5 million to fund projects starting with as few as two homes, covering up to 80% of project costs.

Key updates to the refinanced agreement include:

- Increased funding: The fund has grown from £25 million to £47.5 million.

- Extended term: The fund will now run until March 2030.

- Focus on micro-SMEs: Continued emphasis on supporting smaller-scale developers.

This initiative complements Homes England’s broader direct lending program, which offers funding for developers building five or more homes annually. It also follows the government’s £700 million extension of the Home Building Fund for SME developers, announced last December, which aims to deliver up to 12,000 additional homes.

Marcus Ralling, Chief Investments Officer at Homes England, stated:
“Small and medium housebuilders play a critical role in delivering new homes where they are needed most. This refinancing reinforces our commitment to supporting these developers, nearly doubling the fund and extending its availability. By providing sustained, long-term support, we aim to help SME builders grow and deliver homes at a faster pace.”

Robert Burgess, Chairman of Invest & Fund, added:
“We’re thrilled to collaborate with Homes England to ensure SME developers have access to the vital funding needed to deliver much-needed homes across the country.”

Housebuilders can apply for funding through Invest & Fund directly.

Homes England, the government’s housing and regeneration agency, is dedicated to ensuring affordable, high-quality homes in well-designed communities. Using its expertise, land, capital, and influence, the agency seeks to attract investment, revitalize communities, and drive the construction of more homes nationwide.