The 25-month facility will finance the development of 25 homes and two commercial units on the site of a former MOT centre in Leyton, East London.

Housing developments funded through the Greener Homes Alliance offering must achieve a minimum EPC rating of B.

Developers can benefit from interest rate margin discounts of up to 2% if a rating higher than B is achieved.

For this development, Lita Homes is targeting an EPC rating of A for all properties through the use solar panels and air source heat pumps.

Nick White, head of development origination at Octopus Real Estate (pictured above), commented: “This is a great example of the Greener Homes Alliance allowing us to introduce new methods of green construction to experienced, local SME developers.

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“The product itself is currently extremely competitive, with interest rates fixed for the term of the loan, and then discounted depending on the EPC rating achieved.

“This combination gives developers and housebuilders certainty of finance costs in uncertain times, and a meaningful incentive to deliver greener homes.

“By providing advice to our borrowers, we hope that the impact of the Greener Homes Alliance goes far beyond just the developments funded directly by the scheme.”

Xhevat Lita, CEO at Lita Homes, added: “We are delighted to be working with Octopus Real Estate to deliver a high-quality, energy-efficient development in Leyton.

“These homes will be a welcome addition to the area, and we look forward to getting started on site.”