Small and medium-sized house builders (SMEs) are getting a major boost as the government relaunches a £150 million partnership to fund greener, more sustainable homes while offering financial incentives to developers.
The initiative, called Greener Homes Alliance 2, is a collaboration between Homes England and Octopus Real Estate, aiming to support SME builders with loan finance while encouraging eco-friendly construction.
Out of the total funding, £42 million will come from Homes England's Home Building Fund, which provides financial backing for SME housebuilders.
Read also
Building on the success of the original alliance launched in 2021 which funded 550 homes, over 40% of which achieved an EPC A rating this second phase introduces 10 key sustainability criteria.
Developers who meet four of these will get a 1.25% discount on loan interest rates, while those who meet six or more qualify for a 2% discount.
The criteria focus on affordable housing, biodiversity, modern construction methods, and energy efficiency. To be eligible for any funding, builders must ensure all homes are fossil fuel-free and have a minimum SAP score of 85.
Marcus Ralling, Chief Investment Officer at Homes England, emphasized the importance of SME housebuilders in shaping a more sustainable housing market, stating:
"Small and medium house builders play a vital and essential role in driving the delivery of much-needed, new, and sustainable homes."
Meanwhile, Andy Scott, Co-Head of Debt at Octopus Real Estate, highlighted the initiative's long-term vision:
"Our mission is to reimagine real estate by delivering high-quality, sustainable places for people to live—homes that are fit for the future and help tackle fuel poverty."
With this renewed backing, SMEs now have a golden opportunity to secure funding, cut costs, and lead the charge in building the eco-friendly homes of tomorrow.
No comments:
Post a Comment