Octopus Real Estate and Homes England complete first Green Home Alliance loans



Octopus Real Estate has completed four loans totalling over £26m as part of its Greener Homes Alliance initiative with Homes England.


These four facilities will fund the development of 80 new homes in Bristol, Sussex, Cambridgeshire and London, which will be delivered by Autograph Homes, Turnbull Homes, Blues Property and Albemarle Proma, respectively.

As part of the Greener Home Alliance offering, the developers will also have access to free expert advice from McBains and Octopus Energy.

Autograph Homes’ Bristol development will comprise 30 houses in Cribbs Causeway, eight of which will be affordable.

All homes will be fitted with PV panels, air source heat pumps and EV charging points to achieve an A or A+ EPC rating.

Meanwhile, the Albemarle Proma scheme will deliver 27 homes on a site in Beckenham, Greater London, which will also feature PV panels, EV charging points and high-quality insulation.

The alliance, which launched late in 2021, offers loans and expert advice to SME developers, enabling them to build energy-efficient homes with a minimum B EPC rating.

Developers receive increasing interest rate margin discounts on the loans as the EPC increases, with A-rated homes benefitting from discounts of 2%.

Benjamin Davis, CEO at Octopus Real Estate, said: “We’re thrilled that our joint venture with Homes England is helping to meet the increasingly urgent need to develop more sustainable homes across the UK.

“By working together with Homes England, McBains and Octopus Energy, we are providing unprecedented access to both funding and expertise to help developers make greener decisions for their projects.

“Creating more energy efficient homes is vital if this country is going to make progress towards net zero.”

Andy Scott, head of residential development at Octopus Real Estate, commented: “Demand for greener finance products for housebuilders has never been higher; developers and housebuilders are more focused than ever on delivering more energy efficient and futureproof homes.

“This drive for greener homes is also coming in the form of recent changes to building regulations, including new standards to reduce energy use and carbon emissions.

“As a team, we’re incredibly proud of the tangible difference our Greener Homes Alliance is already making to developers and society at large.”

Harry Swales, chief investment officer at Homes England, added: “This recent milestone demonstrates the impact the Greener Homes Alliance has had on the market, and the appetite of SME developers to build more energy efficient homes is clear to see.

“We’re sure that the alliance will continue to provide SMEs with a route to finance that may otherwise be unavailable, to help them build the homes of the future."

 



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