United Trust Bank (UTB) and Homes England, the government’s housing delivery agency, have announced a £250 million fund to support small and medium sized builders with development finance at up to 70% Loan to Gross Development Value.

The Housing Accelerator Fund will provide construction loans between £1m and £10m.

The alliance is designed to improve access to finance offered to smaller builders and drive the continued diversification of the housing market over the coming years.

Applications are being accepted from today and prospective borrowers should contact UTB.

Gordon More, chief investment officer at Homes England, said: “The Housing Accelerator Fund is open for business from today. In line with Homes England’s commitment to support SMEs, it will help smaller builders get on and build now, as well as improve the lending landscape for SMEs by driving competition in the market, improving choice and encouraging innovation.

“United Trust Bank have consistently supported housebuilders of all sizes and are an experienced and capable lender, we’re pleased to be collaborating with them on this long-term partnership and look forward to seeing the fund support the delivery of new homes across the country.”

Noel Meredith (pictured), UTB’s executive director, added: “SME housebuilders have a vital role to play in delivering the UK’s new housing needs and UTB has amassed considerable experience helping such businesses to complete thousands of successful developments.

“This is an exciting new partnership with Homes England which will make a real difference to both long established and newly formed development companies requiring competitive funding and the long-term support of a knowledgeable and experienced specialist lender. This alliance will help to reinvigorate and increase diversity in the SME housebuilding sector, and boost housing supply in areas under the greatest affordability pressures.”