A regional homebuilder has secured £165million in funding to fuel its expansion.
Allison Homes has agreed a financing package with its three major funding partners – HSBC, NatWest and Homes England, the government’s housing agency.
The financing will be provided by the Home Building Fund, which is designed to help SME housebuilders overcome funding barriers in order to build homes more quickly.
The idea is that the funding will help Allison Homes move towards building 2,000 homes annually, capitalising on improving interest rates.
Ian Trinder, Chief Financial Officer of Allison Homes, said: “This is a very exciting moment for our business as it shows real confidence from strong funding partners in our long-term growth plans.
“Regional homebuilders, like Allison Homes, play a crucial role in delivering the housing needed to meet local and national demand, while also investing in infrastructure, creating jobs and supporting the local economy.
“Importantly, this financial package means we can continue our ambitious growth trajectory, whilst focusing on what matters most – building high-quality homes, creating places people are proud to live in, and being the homebuilder that people can trust.”
The funding comes as the business targets further growth, having increased its revenue from £154m to £202m in the last year – with unit sales also rising from 626 to 808 in the same period.
Ian added: “Over the past year, we’ve taken decisive steps to strengthen the business for the long term – investing heavily in land, regional growth, operational infrastructure, systems and our people.
“Delivering this during a challenging economic period has been no small task, and we’re incredibly proud of what we’ve achieved to date.
“The country continues to face a significant housing shortfall, and our sector has an important responsibility to help address it.”
Simon Century, Chief Investment Officer at Homes England, added: “Small and medium housebuilders play a vital role in building a diverse and resilient housing sector.
“Funding from Homes England will enable Allison Homes to expand its regional delivery, supporting the construction of more high quality, affordable homes.”
