£300m fund to fuel development of energy-efficient homes
Paragon Bank’s Development Finance arm has announced an expansion of its Green Homes Initiative, adding an extra £100m to support developers constructing energy-efficient homes.
Initially launched in November 2021 with a £100m lending tranche, it was then increased to £200m in 2023 and has now been further extended to £300m, aiming to assist more SME developers in delivering environmentally friendly homes.
Under this initiative, the Solihull-based finance firm helps developers who build homes with an Energy Performance Certificate (EPC) rating of A benefit from a 50% reduction in loan exit fees.
To qualify, the development must include at least five private units, with 80% or more of them achieving an EPC rating of A, and the remainder meeting at least EPC C standards.
Neal Moy, managing director of Paragon Development Finance said: “We are thrilled to increase our Green Home Initiative fund to £300m, enabling Paragon to support more developers creating environmentally-friendly homes. This is of vital importance as we head towards 2050 and a carbon-neutral future.
“We have been pleased with the strong level of demand for our Green Homes Initiative, which shows that producing energy-efficient homes is high on the agenda of many SME housebuilders and developers. We’re passionate about meeting the market’s demands and we look forward to funding more green housing schemes in the future.”
Deborah Bateman, sustainability director at Paragon Banking Group, said: “It’s vital that we support customers across our business lines on the journey to Net Zero and we have been pleased with the adoption of the Green Homes Initiative since its launch in 2021.
“This scheme rewards those developers building the most energy-efficient homes, helping to improve the environment and reduce energy bills for residents. The UK still has a long way to go to become carbon neutral by 2050, but we stand ready to support our customers.”
