Homes England, alongside HSBC and NatWest, will provide regional home builder Allison Homes with a £165 million finance facility to support the building of 2,000 new homes across the East of England, the Midlands and South West.
The refinancing package marks a significant milestone in the company’s growth strategy, enabling it to accelerate land acquisition and development and increase the supply of affordable, high-quality homes across its regions.
“Small and medium housebuilders play a vital role in building a diverse and resilient housing sector,” said Simon Century, chief investment officer at Homes England.
“Funding from Homes England will enable Allison Homes to expand its regional delivery, supporting the construction of more high quality, affordable homes.
“This financing deal is a prime example of how the Agency works collaboratively with both public and private partners to achieve our mission of building thriving communities that people can be proud to call home.”
Financing will be provided by the Home Building Fund, which is designed to support SME housebuilders to overcome funding barriers in order to build homes more quickly.
The loan will be utilised to bring forward a strong land pipeline and support the growth of two newer regions in the South West and East Midlands, with the aim of delivering around 700 homes a year, and around 2000 homes over the term of the loan.
Ian Trinder, chief financial officer of Allison Homes, said:
“This is a very exciting moment for our business as it shows real confidence from strong funding partners in our long-term growth plans. Regional homebuilders, like Allison Homes, play a crucial role in delivering the housing needed to meet local and national demand, while also investing in infrastructure, creating jobs and supporting the local economy.
“Importantly, this financial package means we can continue our ambitious growth trajectory, whilst focusing on what matters most – building high-quality homes, creating places people are proud to live in, and being the homebuilder that people can trust.”
