This also marks eight years since Titlestone Property Finance was acquired by Paragon.

While residential development remains central to the division's proposition, lending growth has also come from a range of specialist sectors, including PBSA, BTR, later living, pre-let commercial developments, care homes and — most recently — light industrial.

Paragon has continued to broaden its specialist expertise — a key part of this being its flagship Green Homes Initiative, through which Paragon has pledged to commit £400m of lending to support the delivery of energy-efficient homes.

The incentive offers borrowers a 50% reduction in loan exit fees for developments that achieve higher EPC ratings, helping improve the sustainability of new housing stock.

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"This milestone is a reflection of the trust our customers, brokers and professional partners place in us, with more than half of new deals coming from repeat customers,” said Neal Moy, managing director at Paragon Development Finance.

“Given the challenges of the operating environment, this is something we’re really proud to have achieved.

"We’re confident in the long-term opportunities lying ahead for the sector, both in residential and more specialist areas, and will continue to work with developers to provide the expertise and backing required to deliver the homes and buildings communities need."

Nigel Terrington, CEO at Paragon Banking Group, added: "The development finance division has evolved significantly since joining the group in 2018, building a strong track record not only in residential development finance but across a growing range of specialist sectors.

“Under Neal’s leadership, the team’s ability to identify attractive opportunities, develop deep sector expertise and support customers through changing market conditions has made it an increasingly important and resilient part of the wider group — demonstrating the benefits of operating a diversified lending business."