Homes England has made the investment so the housebuilder can develop a 21-home scheme in Thirsk, including both affordable and open market homes.

This deal, called an SME Accelerator Loan, provides development finance alongside a second loan to fund land acquisition for follow-on sites.

“The Accelerator Loan is a game changer for SME housebuilders like us,” said Zach Cribb, director at Yorkshire Homes.

“Currently, limited market funding options force SMEs to work site by site, completing one project before starting another.

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“This new financial flexibility will enable us to secure land ahead of time, creating a consistent pipeline of development rather than stop-start projects.”

The government’s Home Building Fund typically supports SME developers with loans ranging from £2m to £10m. It was backed with an additional £700m from the government last year.

Simon Century, CIO at Homes England, added: “The SME Accelerator Loan has been designed to provide the certainty and flexibility that SMEs need to grow their housebuilding activity and contribute to achieving that target.

“This loan to Yorkshire Homes is one example of Homes England’s commitment to supporting those developers with ambitions to grow their development pipelines and it’s fantastic to see a family-run business being given the support to do so.”