Housebuilders have cautiously welcomed Homes England’s new loan fund for SMEs but have warned it needs to be accessible and matched with planning reforms to boost delivery.

Homes England and asset manager Newstead Capital yesterday 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 over five years, has been described by Homes England as the “first ever to allow institutional investors to provide debt via private markets to SME housebuilders”