National Housing Bank backs Ludlow scheme with £11m loan

Shropshire housing developer Pickstock Homes’ plan to build 91 houses in Ludlow have been boosted by the government’s financing body.

The National Housing Bank, formed last year as part of government plans to boost house building nationally, has provided development funding of £11m for the third phase of a 200-home development in the Rocks Green area of Ludlow, an allocated housing site which was granted outline planning permission in 2019.

Homes England has previously supported Pickstock to build 140 new family homes in phases one and two of the scheme.

The decision was announced alongside funding for two other schemes, in Salford and Bromley, totalling around £35m for all three.

“These deals demonstrate the breadth and diversity of the National Housing Bank’s offer and underline our appetite to work with investors, developers, home builders and places across the country,” said Simon Century, chief executive officer of the National Housing Bank.

“The speed of our work, as underlined by these deals in particular, is evidence that we will take effective, purpose-driven decisions quickly and proactively, acting as an enabler, not a barrier, to the market as we continue our work to deliver homes and regeneration across the country.”

The National Housing Bank operates as part of Homes England, and plans to invest up to £16bn through debt, equity, and guarantee products. The government hopes to attract more than £50bn of private capital investment through the scheme.

Turnover for Oswestry-based Pickstock jumped by almost 70% of £28.7m for the year to 31 July, according to the group’s latest accounts, filed with Companies House in May.

“Whilst there remains uncertainty over the economic policies of the new government, we are optimistic that the latent demand for new housing coupled with the ongoing under supply of new homes will continue to under pin the market,” read a director’s report filed with the accounts.