Midlands housebuilder secures £165m finance deal

East-Midlands based Allison Homes is set to expand after securing a significant funding package backed by Homes England.

The government-backed housing and regeneration agency will provide direct financing from its Home Building Fund, a scheme which is designed to support SME housebuilders with direct development finance in order to build homes more quickly.

Allison Homes says that, combined with backing from the firm’s exiting lenders, HSBC and Natwest, a total of £165m will be provided to support the growth of its land pipeline in the East Midlands and South West regions, part of plans to up delivery from around 700 homes to 2,000 homes over the term of the loan.

Ian Trinder, Chief Financial Officer of Allison Homes, said the deal represented a “very exciting moment” for the business, as it showed “real confidence from strong funding partners” in its 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,” he said.

“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.

“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. We’ve also grown unit sales from 626 to 808 and revenue from £154 million to £202 million, with a significant focus on recurring partnership revenue alongside open market sales.

“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.

“This financing deal is a prime example of how the Agency works collaboratively with both public and private partners to achieve our mission of building thriving communities that people can be proud to call home.”