Housing Growth Partnership invests c£18 million of equity to fund the delivery of 557 new homes in the Midlands

Housing Growth Partnership (“HGP”), the Lloyds-backed equity investor in the UK Living sector, has invested £17.7 million of equity across seven housing schemes in the Midlands since the start of 2023.

HGP’s investment, alongside a diverse mix of established, local housebuilders, will enable the accelerated delivery of 557 much-needed for-sale and for-rent apartments and houses across the undersupplied Midlands region. The schemes, which are scheduled to complete between Q3 2024 and Q4 2025, comprise:

  • A sustainability-led retrofitting of the former St. Mary’s Hospital in Melton Mowbray, Leicestershire, to deliver 41 houses and four apartments, alongside Snowdown Homes
  • 37 and 166 apartments respectively in Birmingham city centre, with Rainier Developments and 10M
  • In Leicester city centre, 171 Build-to-Rent apartments, alongside Monk Estates
  • 21 homes in Sutton, Bedfordshire, representing a second transaction with Cora Homes. The scheme will be partly delivered using Modern Methods of Construction, reducing carbon emissions and accelerating construction
  • 47 new homes in Tansley Gardens, alongside Stancliffe Homes
  • Land purchase for c70 new homes in Derbyshire, in partnership with Cora Homes

The Midlands is a key region for HGP, where it has been partnering with SME housebuilders since 2016. To date is has provided c. £37 million of equity funding across 20 schemes in both the East and West Midlands, of which over £26 million has been invested over the last two years. HGP’s equity funding is addressing an acute housing shortage in the Midlands, exacerbated by rising house prices and a shortage of good quality, sustainable homes.

Mike Murphy, Investment Director for the Midlands at HGP, said: “Against a restrictive debt financing backdrop, the requirement from regional UK developers for funding solutions that enable them to grow their businesses and accelerate housing delivery has never been more acute. We have significant ambitions in the Midlands to continue expanding into different tenures. At the same time, these investments are aligned with our commitment to funding schemes which are delivering demonstrable environmental and social value.”