Guidance

Home Building Fund

If you're building homes for sale or rent, or preparing land for homes, we can loan you £250,000 to £250m to cover development or infrastructure costs.

Applies to England

What the fund provides

The Home Building Fund is a flexible source of funding administered by Homes England on behalf of the government.

It provides two types of finance, which we can tailor to your circumstances.

Development loans

These are:

  • for meeting the development costs of building homes for sale or rent
  • to be taken out over 5 years
  • to be drawn down to 31 March 2025

Infrastructure loans

These are:

  • to prepare the site for the infrastructure needed for housing to progress and land to be prepared
  • to be taken out over 20 years

Infrastructure projects must ultimately lead to the development of new housing.

Example projects

We want to encourage innovation, both in the kind of homes that are built and the way they are delivered.

Projects you might need funding for could include:

  • community-led housing projects
  • serviced plots for custom and self-builders
  • off-site manufacturing
  • new entrants to the market
  • groups of small firms working together to deliver larger sites

Who is eligible

If you are a private sector organisation you may be eligible if:

  • you are planning on building more than five homes
  • you have already purchased a site in England that you have majority control of
  • your project may stall or progress much less quickly without this loan
  • you are a UK registered corporate entity

You also need to have a clear route to getting planning consent when we make the loan offer.

We cannot fund projects where there are leasehold new houses.

If the eligibility criteria changes

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

How the fund works

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

The key features of the fund are:

  • loans of £250,000 to £250 million are available
  • we will consider smaller loans for innovative housing solutions and serviced plots for custom builders
  • interest is payable at transparent, pre-agreed variable rates
  • sales income can be recycled to minimise the loan request
  • we will consider subordinated lending
  • eligible costs will be discussed with each applicant and depend on the type of funding requested

The fund provides loan finance but we will also consider other forms of financial support. We are an investor in the Housing Growth Partnership which provides equity capital directly for residential development projects.

We also have an investment partnership with Barclays, to provide residential development debt funding to build more homes more quickly. For more information contact 0800 015 1921.

In addition, we have the Housing Accelerator Fund, a five-year alliance with the United Trust Bank to improve financial support for the building activities of small and medium sized housebuilders and developers.

How we prioritise applications

As a government backed initiative, the Home Building Fund also 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
  • clear local support
  • projects that support policy priorities such as strengthening the Small and Medium-Sized Enterprises (SME) developer market, brownfield development and diversification and innovation in the housing market

Lending decisions

At the point at which a loan offer is made, applicants are normally required to have a controlling interest in the land and a clear route to achieving planning consent.

Any lending decision we make to you under the Home Building Fund may be changed or withdrawn by us until we have completed due diligence and signed agreements with you. We therefore advise you not to make business decisions assuming your application will be successful until we have signed agreements with you.

Homes England has responsibility for managing the Fund and its lending decisions are final.

How to apply

  1. Contact us online through our enquiry form, or by email, phone or post.

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

  3. We allocate you a dedicated transaction manager.

  4. You’ll receive our lending decision and confirmed price.

  5. We complete due diligence and sign the agreement.

  6. You build your homes or infrastructure.

  7. You repay the loan.

Like any development loan, you’ll need to tell us about your development plans and business finances as part of our decision-making process.

Contact us by email

fundingenquiries@homesengland.gov.uk

Contact us by phone

Telephone: 0300 1234 500

Contact us by post

Home Building Fund
Homes England
Windsor House
42 – 50 Victoria Street
London SW1H 0TL

Developer case studies

Some of the stories behind the projects we have supported, both large and small, to deliver the homes we need.

‘Know your customer’ guidance

Documents we may need to see about you and your company

Costs of a Home Building Fund loan

Understand how we use credit scoring to assess your creditworthiness and collateralisation.

Financial crime compliancy: policy statement

Information about our anti-money laundering, anti-fraud programmes and our zero tolerance approach to bribery and corruption.

Published 4 October 2016
Last updated 13 November 2021 + show all updates
  1. Added more detail to the 'How the fund works' sub-section to accurately communicate the options that are available

  2. Updated for extension of fund availability.

  3. Added the link back to the enquiry form on the partner portal.

  4. Added a callout to say that due to essential maintenance on Homes England's partner portal the enquiry form will be down for a short period.

  5. First published.