Homes England boost for new homes

Homes England, in partnership with HSBC and NatWest, has agreed a £165 million financing facility for regional housebuilder Allison Homes to support its next phase of expansion across the East of England, the Midlands, and the South West.

The agreement, which concluded on 18 December 2025, is designed to accelerate land acquisition, drive forward development activity, and substantially increase the delivery of affordable, high-quality homes in these key growth areas. This new financing leverages the Home Building Fund, a government initiative explicitly established to address barriers to growth for small and medium-sized (SME) housebuilders, and demonstrates the government’s commitment to diversifying the UK’s housing supply chain.

The funding marks a significant milestone for Allison Homes, providing the capital required to advance its ambitious development pipeline. With an active strategy targeting both partnership-led and open market housing developments, the company is now positioned to scale up annual delivery from approximately 700 homes, primarily from its East Division, to around 2,000 units over the life of the loan. This expansion will be underpinned by recent regional investments, including the opening of new offices in Bristol and the East Midlands, and the acquisition of a prominent 510-home site in Bristol, representing Allison Homes’ largest development to date.

Senior figures from the finance partners highlighted the strategic importance of supporting regional homebuilders in meeting both local and national housing needs. Homes England’s involvement signals ongoing public sector support for strengthening the resilience and diversity of the residential development sector. The participation of HSBC and NatWest, longstanding lenders to Allison Homes, reinforces confidence in the company’s long-term business model and underscores sustained appetite within the banking sector for residential development finance that supports both supply and community growth objectives.

The deal is also indicative of a wider trend towards joint public-private initiatives to address housing shortages and stimulate regional economic activity. For suppliers, subcontractors, and contractors, this sustained financial backing presents immediate and medium-term opportunities across the development pipeline, from land promotion and infrastructure works through to construction and fit-out. The emphasis on ramping up output in emerging and established regions aligns with stated public sector objectives to bolster supply chain capacity, support job creation, and address regional imbalances in housing delivery.

Allison Homes’ trajectory over the past year, with unit sales increasing from 626 to 808 and revenue rising from £154 million to £202 million, signals robust market demand and a strong operational foundation. Their continued commitment to investing in people, systems, and operational infrastructure sets a precedent for business resilience amid a challenging economic backdrop. The current financing agreement thus offers a clear signal of the scale of business and supply chain opportunities emerging as the sector responds to the ongoing housing supply challenge.

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