This partnership will now offer development loans of up to £4m at a maximum 70% LTGDV and up to 80% loan-to-cost.

Homes England anticipates this to support the delivery of 600 new homes, building on the 107 already created through the original Lending Alliance.

The Lending Alliance was originally announced as a seven-year partnership in 2020 with a £25m revolving fund.

This facility was made available to support small builders with construction loans of up to £2.5m, funding schemes of two homes and more at up to 80% loan-to-cost.

The Lending Alliance has now grown to £47.5m with the agreement extended to March 2030.

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“Small and medium housebuilders play a vital and essential role in driving the delivery of new homes where they are needed most,” said Marcus Ralling, CIO at Homes England.

“This refinancing demonstrates our ongoing commitment to supporting the small builders that are crucial to building a diverse and resilient housing sector.

“By nearly doubling the fund and extending its availability, we’re providing sustained, long-term support to help SME developers grow and deliver more homes at pace.”

Robert Burgess, chairman  at Invest & Fund added: “Invest & Fund are delighted to be working with Homes England to support SME developers and ensure that they have access to vital funding to deliver much needed new homes across the country."