Development finance lending fund launched by Homes England

Homes England has launched a long-term development finance lending fund, alongside Newstead Capital to support SME housebuilders.

It is intended for the fund to grow to £300 million in subsequent capital raised and deliver £1 billion of funding over the fund's lifetime.

The fund will be managed by Newstead Capital.

The fund aims to help Homes England's mission to accelerate change in the housing market, by introducing new source of institutional capital and diversifying lending channels.

Homes England plans to build 5,000 high-quality, affordably priced and efficient homes across England.

The fund is to be used to encourage the creation of sympathetic and and sympathetic and environmentally responsible projects and support SME house builders and create regional job creation.

Peter Denton, chief executive of Homes England, said: “This partnership is our latest intervention to offer SME housebuilders a route to finance that may otherwise be unavailable through traditional means.

"Introducing new sources of institutional capital to support SME house builders is a priority for Homes England and our cornerstone investment in this fund signals government support for accessible and competitive finance to meet the needs of SME developers across the country.

"We look forward to working with our new partners and welcome further institutional capital to help grow this fund and give SME housebuilders the helping hand they need to get more quality homes built in our regions."