Paragon ups Green Homes Initiative fund to £300m

The Green Homes Initiative was launched in 2021 with an initial £100m tranche of lending available to developers looking to build homes with high energy performance standards.

The scheme was then upped to £200m in 2023, and has now been extended to £300m to support more SME developers looking to build “green homes”.

The Green Homes Initiative offers developers who build homes with an EPC rating of A around a 50% reduction on loan exit fees.

To qualify, at least five private units must be built within the development and 80% or more of these must have an EPC rating of A, with any remaining being at least an EPC rating of C.

Neal Moy, managing director of Paragon Development Finance, said: “We are thrilled to increase our Green Homes 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, added: “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.”