Developers of residential and mixed-use property developments in Wales can now access up to £10 million in finance from the Development Bank of Wales for both speculative and non-speculative developments.
Funded by the Welsh Government, the Wales Residential Property Fund will offer SME developers clear and easy access to flexible loans ranging from £150,000 to £10 million with repayment terms of up to four years and up to 100% of build costs. The £117 million fund is fully recyclable so is expected to have a total investment impact of £770 million by 2039, providing certainty of funding to the market, and will support the construction of 4,450 new homes. It merges the funds previously available under the Wales Property Development Fund and Wales Stalled Sites Fund.
A second phase of the Green Development Incentive, is also being made available, offering discounted rates for housing projects that deliver more thermally efficient and lower carbon homes in Wales. The Incentive will provide £60 million of lower cost loans over the next two years.
The Development Bank reported a 27% increase in funding for property development projects in the last financial year ending 31 March 2025 with £48 million compared to £38 million in 2023/24. Led by Property Fund Manager Nicola Crocker, the dedicated team provided funding to 23 property businesses working on 24 new developments with 390 new homes delivered, 125 of which were affordable and a further 2,626 sq. ft of commercial space.
Cabinet Secretary for Housing and Local Government, Jayne Bryant, said: “It’s fantastic that through our support the Wales Residential Property Fund will make accessing essential funding even easier for developers and help deliver even more housing across Wales.
“Delivering more homes now and for the future is a priority for the Welsh Government which is why it’s so important that we continue to work in partnership to increase the supply of affordable, good quality housing.”
Nicola Crocker is Property Fund Manager for the Development Bank. She said: “SME developers are delivering social and economic value to communities throughout Wales with the development of sustainable and energy-efficient homes, and creation of employment opportunities.
“The Wales Residential Property Fund provides a clear offer for the market with some very attractive terms. As a development bank, we can provide a range of tailored funding solutions for both speculative and non-speculative residential, commercial and mixed-use developments.”
The Development Bank provides short-term residential, mixed-use, and commercial property development finance from £150,000 to £10 million from a range of funds including the Wales Commercial Property Fund, Wales Residential Property Fund and Green Development Incentive.
