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News alert – 2 April 2025

Greener Homes Alliance Offers Development Loans for England’s SME Housebuilders

Homes England and Octopus Real Estate have launched the second phase of the Greener Homes Alliance, providing discounted development finance to small and medium-sized (SME) housebuilders. The initiative supports the construction of energy-efficient homes across England.

A total of £150 million is available, with £42 million provided by Homes England’s Home Building Fund. Loans range from £2 million to £20 million. Interest rate reductions of up to 2% are available for developers meeting environmental and social criteria. At least four sustainability measures must be met for a 1.25% discount, while six or more provide the full 2%.

New sustainability measures include using modern methods of construction (MMC), ensuring all homes are fossil fuel free with an average SAP score of 85 or higher, and supporting industry mental health initiatives. Developers must also meet key performance indicators set by the programme.

Eligible applicants include SME housebuilders and developers operating in England.

Applications can be made at any time.