Over this period, the bank developed a lending pipeline of £264m. According to Paragon, a significant proportion of these balances, particularly those related to projects which have already started, are expected to be drawn in the early part of the coming financial year.

New lending was also up, by 3%, as the bank funded developments with £527m over the year.

Earlier in the year the bank also announced an extension of the Development Finance Green Homes Initiative by a further £100m, taking the scheme to £400m.

New lending facilities for the scheme, which rewards energy-efficiency while providing financial benefits to customers, stood at £295m by the end of the financial year.

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Overall lending across the wider Paragon Banking Group stood at £2.68bn, with commercial lending operations — including SME lending and development finance — contributing £1.19bn and Mortgages £1.49bn. The group’s net loan book grew 4% to £16.3bn and operating profit increased by 0.4% to £294m.

“To record lending growth in a slow market is very pleasing and testament to the quality of our team and proposition, as well as our diversification strategy,” said Neal Moy, managing director at Paragon Bank Development Finance (pictured above).

“Developers appreciate our flexible and tailored approach, in addition to the certainty of working with a lender with a track record of commitment to the sector and the financial strength to power their schemes.”