Homes England, Octopus Real Estate secure €175m for sustainable homes

Homes England and Octopus Real Estate have launched a second phase of their initiative to finance sustainable home construction by small and medium-sized builders.

The Greener Homes Alliance 2 is a £150 mln (€175 mln) initiative and includes £42 mln (€49 mln) from Homes England.
Launched in 2021 to increase funding for smaller developers, the initial phase of the Greener Homes Alliance financed over 550 sustainable homes across the country. 
The first phase of the Greener Homes Alliance successfully provided 20 loans totalling £150 mln, with an average loan size of £7.5 million (€8.7 mln) to each small or medium-sized developer.
During the second phase, developers can earn interest rate discounts from 1.25% to 2% by meeting criteria such as using modern methods of construction, paying a living wage, and supporting mental health initiatives. All funded projects must be fossil fuel free and achieve a high energy efficiency rating.
Marcus Ralling, CIO at Homes England, said: “Small and medium housebuilders play a vital and essential role in driving the delivery of much-needed, new and sustainable homes. This extended Alliance is an excellent example of how we are working with partners like Octopus Real Estate to support the SME housebuilders that are crucial to building a diverse and resilient housing sector.”
Andy Scott, co-head of Debt, Octopus Real Estate, added: “We are extremely proud of the impact our Greener Homes Alliance initiative has had when it comes to supporting developers looking to make greener decisions for their projects, and we’ve spent a lot of time working out the new criteria with Homes England to make sure the next phase is as impactful as possible.”