Homes England is the government's housing and regeneration agency for England, and it provides development finance to smaller and medium-sized housebuilders through the National Housing Bank. Its loans support residential schemes of five or more homes that might otherwise struggle to find funding on suitable terms. Bridge & Build Finance is an independent broker and is not part of Homes England, so we can compare its terms with banks and specialist development lenders. You can read the current guidance on GOV.UK.
About Homes England
Homes England is a public body sponsored by central government, with a remit to increase the supply of new homes and support regeneration in England. Alongside land, grant and infrastructure programmes, it lends to housebuilders. In 2026 its development finance for smaller housebuilders moved under the National Housing Bank banner, which the guidance describes as backed by government, and the older Home Building Fund development finance guidance was withdrawn in June 2026.
Homes England also works with private lenders. For example, Barclays says it runs a Housing Delivery Fund with Homes England providing senior and mezzanine development debt for new homes in England. Because it is a government lender, its decisions also take account of policy aims such as delivering homes on sites that might otherwise stall.
Homes England is one of the lenders we compare for development finance on residential schemes in England.
What Homes England funds
At the time of writing (October 2026), the National Housing Bank guidance for smaller housebuilders sets out these criteria:
| Criterion | What the guidance says |
|---|---|
| Region | England only |
| Scheme size | Minimum of five homes |
| Loan size | £250,000 to £200 million |
| Leverage | Up to 90% of costs, typically around 80% |
| Equity | Typically 20%, or 10% for strategic schemes; planning gain can count towards equity |
| Term | Typically three years, with longer terms available |
| Type of lending | Senior and mezzanine development finance |
| Security | The site must be owned by a UK-registered entity |
As well as standard site finance, the guidance describes an Accelerator loan, which funds development of a first site and provides headroom to buy all of the land for the next scheme. It also allows genuine recycling of sales receipts, so money from completed homes can be used for build costs later on the same site.
Homes England lends on new-build housing and residential-led schemes, including conversions. It does not offer short-term bridging for property purchases or refurbishment. See our pages on ground-up development finance and higher-leverage development finance.
Who Homes England suits (and who it may not)
Homes England tends to suit:
- Smaller and medium-sized housebuilders with a scheme of five or more homes in England.
- Developers who need higher leverage than a bank will offer, up to 90% of costs.
- Developers who can use planning gain as part of their equity.
- Builders with a pipeline who could use the Accelerator loan to secure their next site.
- Longer or phased schemes that need a term of three years or more.
It is a poorer fit for schemes of fewer than five homes, projects in Scotland, Wales or Northern Ireland, self-build, and anyone without evidence of professional capability. It is also not a route for bridging, refurbishment or buy-to-let finance.
What Homes England looks at
Like any development lender, Homes England assesses both the developer and the scheme. The guidance highlights evidence of professional capability, and you should expect it to look at:
- Your track record and that of your professional team, including the contractor.
- The development appraisal: land, build costs, contingency, fees, sales values and profit.
- Planning permission and any section 106 or other obligations.
- Ownership of the site by a UK-registered company or similar entity.
- How much equity you are putting in, including any planning gain.
- How the scheme contributes to housing supply in its area.
A government lending process can involve detailed due diligence, so allow time and prepare a complete, well-evidenced pack.
Pros and cons
Pros
- Government-backed lender with a remit to support smaller housebuilders.
- Wide loan range, from £250,000 to £200 million.
- Leverage up to 90% of costs, with planning gain able to count as equity.
- Terms of around three years or longer suit larger and phased schemes.
- Accelerator loans and recycling of sales receipts can help a growing builder.
Cons
- England only.
- Minimum scheme size of five homes.
- Requires evidence of professional capability, so not for first-time developers without a strong team.
- Due diligence can be detailed and take time.
- No bridging or refurbishment products.
Going through a broker vs going direct
You can enquire with the National Housing Bank directly through GOV.UK. Many developers still compare it with banks and specialist lenders, because the cheapest headline pricing is not always the right fit once leverage, fees, timescales and conditions are considered. A private lender may also be able to complete sooner where a site purchase has a deadline.
We search the market for development finance, prepare your appraisal and approach suitable lenders, which can include Homes England where it fits. It is free to enquire, and any broker fee is disclosed before you proceed. See how development finance works.
Alternatives to Homes England
- Barclays: runs the Housing Delivery Fund with Homes England, alongside its own development lending.
- Development Bank of Wales: a government-owned lender for residential development in Wales.
- Lloyds: bank development lending for experienced housebuilders.
- Paragon Bank: development finance for SME housebuilders.
- OakNorth Bank: larger development facilities for experienced developers.
Common questions
How much can Homes England lend on a development?
The National Housing Bank guidance for smaller housebuilders gives a loan range of £250,000 to £200 million, on schemes of at least five homes in England.
What leverage does Homes England offer?
Up to 90% of costs, typically around 80%. Developers usually provide about 20% equity, or 10% on strategic schemes, and planning gain can count towards it.
Is the Home Building Fund still open?
The Home Building Fund development finance guidance was withdrawn in June 2026. Development finance for smaller housebuilders is now offered through the National Housing Bank.
Does Homes England lend outside England?
No. Its development finance applies to England only. In Wales, the Development Bank of Wales offers property development lending.
Can a first-time developer borrow from Homes England?
The guidance requires evidence of professional capability. A first-time developer with a strong, experienced professional team may be considered, but most first schemes are funded by specialist lenders.
This review is our independent summary of the lender's publicly stated lending, checked in October 2026. Criteria change, so confirm the current position before relying on it. Bridge & Build Finance is an independent broker and is not part of any lender reviewed. Finance is subject to status, valuation and lender approval.
