Octopus Real Estate has partnered with Homes England to commit £175m to a new platform offering finance for developers.
Homes England will provide £46m to the new Greener Homes Alliance which hopes to support construction of 750 homes, while also supporting SMEs to build sustainably.
The platform will provide loans of up to £20m to developers to allow them to build energy-efficient homes.
Those homes will need to achieve a minimum energy performance certificate rating of B and will receive interest rate discounts for performance above this, homes with an EPC rating of A will receive a discount of 2%.
SMEs will also be provided with free advice from sustainability consultants McBains and Octopus Energy.
Andy Scott, head of residential development at Octopus Real Estate, said: “Although green credentials may be an aspiration for most developers, sometimes access to funding, costs and education can stand in the way of these aspirations.
“The Alliance will offer tangible discounts which can help fund the costs to support the delivery of green developments, plus access to advice and education, which will enable SME housebuilders to deliver future-proof, energy-efficient homes to be enjoyed for generations to come.”
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