Octopus Real Estate has partnered with Homes England, the Government’s housing delivery agency, to create the Greener Homes Alliance.
The new Alliance will commit £175 mln (€207 mln), providing both loan finance and expert support to SME housebuilders, enabling them to build more high quality, energy efficient homes throughout England.
As part of its efforts to expand the supply of finance available to SMEs, Homes England will provide £46 mln of the £175 mln.
The Alliance will provide loans of between £1 mln and £20 mln to finance new SME development projects. Homes funded must achieve a minimum Energy Performance Certificate (EPC) rating of B.
Before starting their developments, SMEs will also benefit from free of charge, expert advice from sustainability consultants McBains and Octopus Energy – a UK renewable energy supplier and part of the Octopus Group.
Loans will be up to a maximum of 85% LTC or 70% LTGDV, to maximum loan sizes of £20 mln.
The Alliance will support the construction of up to 750 new homes.
Housing Minister RT Hon Christopher Pincher MP said: 'We are determined to ensure that our homes are fit for the future and improving energy efficiency is a key part of our ambitions to reach net zero emissions by 2050. Our Future Homes Standard will ensure?that from 2025?new?homes?produce at least 75% lower CO2?emissions and be future-proofed with low carbon heating. This partnership will help reach our targets for cleaner, greener homes for future generations.'
Peter Denton, Chief Executive at Homes England said: 'This new partnership, the latest in a series of impactful lending alliances, will give smaller housebuilders both the funding and the knowledge needed to build more sustainable homes. The Greener Homes Alliance brings developers and lenders closer together, providing affordable finance, improving knowledge sharing and creating new paths to net zero.'
Benjamin Davis, CEO of Octopus Real Estate, commented: “Creating more energy efficient homes across the United Kingdom is vital if we’re to make progress towards net zero. Our joint venture with Homes England will help meet this increasingly urgent need to develop more sustainable homes. The Alliance will provide access to funding and expertise to help developers ‘go green’ when making decisions for their developments. Given the public are more in tune than ever before about how energy efficient their homes are, and in turn their own impact on the environment – the opportunity for developers building greener homes is huge.
