The bond aims to raise an initial £2m to finance residential-led developments.
The intention is that the majority of the new homes will be eligible for the government’s Help to Buy scheme, which provides equity-supported loans to enhance the deposits of people buying new homes within the scheme’s threshold levels.
Investors will be able to hold bonds as part of their annual Isa allowance, or receive tax-free income from it as part of their personal savings allowance.
St Mark Homes focuses on mid-price range developments, typically selling at less than £1,000 per sq ft, with Help to Buy eligible units making up 65-70% of overall stock on each site.
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The demand for these homes remain strong, with the latest government data revealing that more than 120,000 properties have been sold through the scheme since it started in 2013, with 81% of the purchasers being first-time buyers.
Funds raised through the bond will be used to increase the number of developments delivered by the property developer.
Barry Tansey, CEO of St Mark Homes, said: “Our aim is to source sites where we can build between 10 and 50 new homes of varying sizes, which would typically be sold off-plan.
“The demand for new housing within the government Help to Buy threshold levels remains robust.
“We’ve been building houses for nearly 20 years and have experienced both the downturn in 2007/08, as well as the boost provided to the industry by the Help to Buy scheme.
“Our projects have and will continue to provide a range of housing, including first-time buyer and affordable homes.”