This partnership has already provided funding for 230 homes over 20 sites with a combined GDV of £130m.

Barwood and Close Brothers provide access to equity and senior debt respectively, in a way that mitigates risk for one another.

Barwood are also currently partnering with Surrey-based housebuilder Kidbrook Homes, on a luxury apartment scheme in Kingston Hill overlooking Richmond Park, also funded by Close Brothers.

Kidbrook were the first SME to work with Barwood Capital on this bespoke model and a recent acquisition in Godalming makes this the eleventh development project they have acquired together.

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“SMEs are known for delivering high-quality, sustainable homes that create significant economic benefits for local communities by leveraging local supply chains and apprentices,” said Simon Davey, business development director at Close Brothers Property Finance.

By partnering with Barwood Capital to create this new lending model, we’re able to provide SME housebuilders with access to both senior debt and equity whilst diversifying risk and removing key barriers to development opportunities—all at a time when the housing shortage remains acute.”

Steve Chambers, director and head of residential at Barwood Capital, added: “Our tried and tested funding model with Close Brothers, will expedite our existing developer partnerships and generate new ones, which will only bolster the UK’s requirement for new homes.”