Developer secures £75m loan for major housing projects


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In Summary

General | 7th December 2018
Developer St Modwen has been provided with a £75m loan from Homes England to help build more than 13,000 new homes across England over the next seven years.

In Detail

Developer St Modwen has been provided with a £75m loan from Homes England to help build more than 13,000 new homes across England over the next seven years.

The loan, which is part of the government’s Home Building Fund, will support the listed Birmingham-headquartered company to speed up the installation of infrastructure, such as roads and schools, on a number of sites.

The new infrastructure will enable the company to construct homes through its housebuilding business, St Modwen Homes, as well as sell other plots to third party housebuilders.

Chief Executive of Homes England Nick Walkley said: "This type of investment is a key example of how Homes England is stepping in to disrupt the housing market and provide homes for those wanting to get a foot on the housing ladder.

"By equipping medium-sized homebuilders like St. Modwen Homes with the resources to speed up construction, we are not just handing them the powers to make homes happen, but also to drive up the quality of new homes."

This move from Homes England will enable St Modwen Homes to more than double its housebuilding output by 2022. Rob Hudson, Chief Financial Officer at St Modwen, added: "Our partnership with Homes England will enable us to bring forward our housing developments more quickly, providing much-needed housing across the country."