£165 million funding for regional homebuilder

Homes England has joined forces with HSBC and NatWest to provide Allison Homes with a £165 million finance facility to support its continued expansion across the East of England, the Midlands and Southwest.

The money will help the company to accelerate land acquisition and development and increase the supply of affordable, high-quality homes across its regions.

Financing will be provided by the Home Building Fund, which is designed to support SME housebuilders to overcome funding barriers in order to build homes more quickly. 

The loan will be used to support the growth of two newer regions in the South West and East Midlands and boost delivery from around 700 homes a year, predominantly from the East Division, to around 2000 homes over the term of the loan. 

Simon Century, Chief Investment Officer at Homes England, said: "Small and medium housebuilders play a vital role in building a diverse and resilient housing sector. Funding from Homes England will enable Allison Homes to expand its regional delivery, supporting the construction of more high quality, affordable homes. 

"This financing deal is a prime example of how the Agency works collaboratively with both public and private partners to achieve our mission of building thriving communities that people can be proud to call home."

Ian Trinder, Chief Financial Officer of Allison Homes, said: "This is a very exciting moment for our business as it shows real confidence from strong funding partners in our long-term growth plans. Regional homebuilders, like Allison Homes, play a crucial role in delivering the housing needed to meet local and national demand, while also investing in infrastructure, creating jobs and supporting the local economy. 

"Importantly, this financial package means we can continue our ambitious growth trajectory, whilst focusing on what matters most - building high-quality homes, creating places people are proud to live in, and being the homebuilder that people can trust. 

"Over the past year, we’ve taken decisive steps to strengthen the business for the long term - investing heavily in land, regional growth, operational infrastructure, systems and our people. We’ve also grown unit sales from 626 to 808 and revenue from £154 million to £202 million, with a significant focus on recurring partnership revenue alongside open market sales. 

"Delivering this during a challenging economic period has been no small task, and we’re incredibly proud of what we’ve achieved to date. The country continues to face a significant housing shortfall, and our sector has an important responsibility to help address it.”