Homes England and asset manager Newstead Capital have announced the launch of a loan fund to help small and medium sized (SME) housebuilders access development finance.

The fund, which is hoped to eventually reach £1bn, has been described by Homes England as the “first ever to allow institutional investors to provide debt via private markets to SME housebuilders”. The aim is to create a new asset class for institutions to invest in SMEs.

Homes England, alongside the Greater Manchester Pension Fund and clients of listed wealth manager Mattioli Woods have committed £80m to the initial close of the fund.