- 4th January 2022
- Posted by: DMM
- Category: Green homes
Homes England, the government’s housing delivery agency, has partnered with a leading UK lender to create the Greener Homes Alliance.
The Greener Homes Alliance will enable SME developers to source discounted interest rates on facilities up to £20 million where their projects meet energy efficiency criteria.
Homes that achieve a SAP score of 92 and above (EPC A) will receive a 2% discount on the interest rate. Where the SAP score is 85 and above will receive a 1.25% discount on the interest rate.
Furthermore, before starting their project, SME developers will also have the option of an initial, free of charge, advice from sustainability consultants. Their aim will be to help developers understand how to deliver high EPC homes together with the costs and practicalities of doing so.
The Greener Homes Alliance aims to support the building of up to 750 new homes whilst helping guide property developers on low carbon construction.
“Homes that achieve a SAP score of 92 and above (EPC A) will receive a 2% discount on the interest rate. Where the SAP score is 85 and above will receive a 1.25% discount on the interest rate.”
Greener Homes Alliance to fund up to 750 new homes
The scheme is designed to support the construction of up to 750 new homes while also equipping SME housebuilders with knowledge and expertise. This will include low carbon construction, allowing developers to build to higher environmental standards, now and in the future.
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.”
Facilities from £1,000,000 to £20 million are available up to a max LTGDV of 70%, max LTC of 85% and terms up to 36 months. Up to £750 million is being committed with £46 million coming from Homes England.
Qualifying projects will include new build house and flat developments, mixed use schemes (with up to 25% commercial) and PRS projects in England.