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The Home Building Fund — lending and investments to support housebuilding

Published 19 May 2025

Applies to England

© Crown copyright 2025

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This publication is available at https://www.gov.uk/government/publications/housebuilding-support-from-the-home-building-fund/the-home-building-fund-lending-and-investments-to-support-housebuilding

SME housebuilders are vital to creating a diverse and resilient housing sector. As the Government’s housing and regeneration agency, Homes England is committed to helping developers overcome barriers to building much-needed new homes across the country.

Through the Home Building Fund, we offer a range of direct lending and investment solutions designed to overcome financing challenges that can delay or prevent vital housing developments from progressing.

Our flexible approach, regional expertise and in-depth knowledge of the housing sector makes us a trusted partner for ambitious and innovative housebuilders of all sizes.

Support from the Home Building Fund includes:

  • development finance
  • complex real estate finance
  • equity and partnerships
  • lending alliances

Development finance

For smaller housebuilders facing limited financing options, our development finance loans help you overcome traditional lending barriers with terms that recognise your unique business needs.

Whether you’re building just 5 homes or delivering schemes of over 100 homes, our team of regional experts can work with you to build bespoke facilities that respond to your specific challenges.

Loans can be used to meet the development costs of building homes for sale or rent. With financing available from £250,000 to over £10 million and covering typically 80% of total development costs, we step in where conventional funding options may be limited or unavailable.

Our development loans can help housebuilders who:

  • are a UK-registered corporate entity or limited liability partnership
  • plan to build 5 or more homes on a site in England
  • have a controlling interest in the land, with outline planning permission in place

Find out more about the Home Building Fund — development finance and how to apply.

Complex real estate finance

The Home Building Fund can also provide senior and mezzanine lending solutions for larger, complex development projects, including infrastructure funding.

Development lending is available across private sale, build to rent, single family housing and later living.

The fund supports multi-site facilities, and we work with a range of partners — from homebuilders to institutional equity — to accelerate housing growth.

For more information, email fundingenquiries@homesengland.gov.uk.

Equity and partnerships

Through the Home Building Fund, Homes England makes equity investments to attract new capital to the housing sector, enabling and unlocking the delivery of homes at scale.

We can invest across all tenures and through the housing lifecycle — from master developer partnerships to delivery platforms.

We aim to work with new capital sources and established delivery capacity and capability.

We can participate in partnerships to co-invest with the private or public sector or funds for institutional investors.

Read about our recently announced investments:

For more information, email fundingenquiries@homesengland.gov.uk.

Homes England does not typically provide equity for individual projects. However, we are an investor in Housing Growth Partnership (external website) which offers equity funding on a site-specific or multi-site basis.

Lending alliances

Through the Home Building Fund, we work with existing lenders to offer more lending opportunities for the homebuilding sector.

Our bespoke lending alliances expand existing risk appetite and create a diversity of products for the sector.

Working alongside our partners, our alliances can support senior mezzanine funding.

Our alliances include: 

  • a lending platform with Octopus Real Estate, called the  Greener Homes Alliance (external website), that provides housebuilders with discounted development finance on competitive loan terms to create high-quality, energy-efficient homes 

  • an alliance with Invest & Fund (external website), which supports development loan applications below the Home Building Fund’s minimum of 5 units

If you are a lender and are interested in finding out more about how we could partner with you, email fundingenquiries@homesengland.gov.uk.

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