Home Building Fund — development finance
Source: gov.uk (2025-05-28)

If you're building homes for sale or rent, we can provide finance from £250,000 to cover development costs.

What the fund supports

We want to support small and medium-sized enterprises (SMEs) and innovative developers and housebuilders to build more homes more quickly and to create great communities.

We also want to encourage innovation, both in the kind of homes that are built and the way they are delivered. Examples of innovative projects you might need funding for could include:
- serviced plots for custom and self-builders
- off-site manufacturing
- new entrants to the market
- community-led housing projects
- groups of small firms working together to deliver larger sites
If you need loan funding for infrastructure and enabling costs to prepare land for homes, you can also apply for an infrastructure loan from the Home Building Fund (https://www.gov.uk/guidance/home-building-fund-infrastructure-loans).

Eligibility for finance

You may be eligible for finance if:
- your project is financially viable
- you are planning on building or refurbishing 5 or more homes on a site in England (refurbished units must be uninhabitable at the point when you apply)
- your project would stall, or progress much less quickly, without this finance
- you are a UK-registered corporate entity or limited liability partnership (LLP)
When we make a finance offer, you will normally need to have a controlling interest in the land and a clear route to achieving planning consent.

We cannot fund projects where:
- there are new leasehold houses
- leasehold flats are charged more than a peppercorn (nominal) ground rent
How the fund works

The fund predominantly provides development loan finance but also offers limited financial support to establish investment platforms and attract new investment.

Loans

All our lending needs appropriate security and loans are typically secured against property assets.

The Home Building Fund offers finance from £250,000. We will also consider smaller loans for innovative housing solutions.

Note that:
- typical terms are up to 5 years
- interest is payable at transparent, commercial, pre-agreed variable rates (https://www.gov.uk/government/publications/costs-of-a-home-building-fund-loan)
- sales income from the homes sold can be recycled to minimise the loan request
- we will consider subordinated lending
- we will discuss eligible costs with each applicant — these depend on the type of funding requested
Contact Homes England (#contact) if you have a viable scheme that offers innovative housing solutions — such as modern methods of construction (MMC) or custom build — and needs development funding outside of these parameters.

We are launching a new product, the SME Accelerator Loan, as part of the Home Building Fund 2025 and 2026. The Accelerator Loan will provide SME home builders with one loan to build homes on a single site, and a second loan to acquire land for a follow-on site. For further information about the SME Accelerator Loan, contact xxx@xxx.xx (mailto:xxx@xxx.xx).

Other investments

The fund can deploy its equity and loan allocation to support the establishment and growth of platforms to enable the delivery of homes at scale and attract additional investment.

We enter in to lending alliances where we utilise the origination and servicing platforms of our partners, enabling us to get our capital out to SME developers faster and also allowing the partner to take on more lending risk in this sector.

We also invest in funds for institutional investors and partnerships which bring together new capital sources and delivery partners.

Examples of these are:
- we are an investor in the Housing Growth Partnership (external website) (https://www.housinggrowth.com/), that provides equity capital directly for residential development projects
- we have made cornerstone investments in funds raised for institutional investment including M&G Shared Ownership Fund and PRS REIT
- we have created a lending platform with Octopus Capital, called the Greener Homes Alliance (external website) (https://octopus-capital.com/real-estate-lending/development-lending/greener-homes-alliance/), that provides housebuilders with discounted development finance on competitive loan terms to create high-quality, energy-efficient homes
- we have partnered with Invest and Fund, who provide loans to micro and SME developers, and will support applications below the Home Building Fund’s minimum of 5 units
To discuss new opportunities, contact Homes England (#contact)

If the eligibility criteria change

The Home Building Fund’s eligibility criteria may be updated from time-to-time to reflect government priorities. Should changes to the eligibility criteria be required we would not be obliged to consult with you about them.

How we prioritise applications

As a government-backed initiative, the Home Building Fund reflects wider government priorities. We are looking for, and will approve, applications based on:
- the best value for money for the taxpayer
- the greatest potential for early delivery
- projects that support policy priorities such as:
- strengthening the SME developer market
- greener homes that support net zero carbon
- diversification and innovation in the housing market
Funding decisions

Any funding decision we make to you under the fund may be changed or withdrawn by us until we have completed due diligence and signed agreements with you. We advise you not to make business decisions assuming your application will be successful — you should wait until we have signed agreements with you.

Homes England has responsibility for managing the fund and our lending decisions are final.

How to apply

Contact Homes England online (https://partners.homesengland.org.uk/Bids/Enquiries/InitialEnquiryPage1), or by email, phone or post.

If you meet our criteria, one of our investments team will help you apply.

We allocate you a dedicated transaction manager.

You receive our funding decision and confirmed price.

We complete due diligence and sign the agreement.

You build the homes.

You repay the investment.

You will need to tell us about your development plans and business finances as part of our decision-making process.

Contact us by email

xxx@xxx.xx (mailto:xxx@xxx.xx)

Contact us by phone

Telephone: xx-xxxx-xxxx (option 3)

Contact us by post

Home Building FundHomes England10 South ColonnadeCanary WharfLondonE14 4PU

Related information

‘Know your customer’ guidance

Documents we may need to see about you and your company (https://www.gov.uk/government/publications/know-your-customer-guidance/know-your-customer-guidance-accessible-version).

Costs of a loan

We will apply interest rates to the loan at commercial rates. We will also charge you an arrangement fee.

Read how we use credit scoring to assess your creditworthiness and collateralisation (https://www.gov.uk/government/publications/costs-of-a-home-building-fund-loan).