Welsh Government-backed fund aims to unlock thousands of new homes across the country
PROPERTY developers in Wales can now access up to £10 million in flexible finance for residential and mixed-use developments, thanks to an expanded funding scheme from the Development Bank of Wales.
Backed by the Welsh Government, the newly launched Wales Residential Property Fund merges the previous Wales Property Development Fund and Wales Stalled Sites Fund. It offers small and medium-sized developers loans ranging from £150,000 to £10 million, with repayment terms of up to four years and up to 100% of build costs.
The fund, which totals £117 million, is fully recyclable and projected to support the construction of 4,450 new homes by 2039, with an estimated total investment impact of £770 million.
A further £60 million will be made available under the second phase of the Green Development Incentive, offering discounted finance for energy-efficient housing schemes that reduce carbon emissions and improve thermal performance.
Property Fund Manager Nicola Crocker, who leads the Development Bank’s property team, said: “SME developers are delivering social and economic value across Wales, from building sustainable homes to creating skilled jobs. This fund offers a clear, competitive package for developers, including both speculative and non-speculative projects.”
The Development Bank has reported a 27% increase in property development funding over the last financial year, with £48 million committed in 2024/25, compared to £38 million the previous year. Funding was provided to 23 businesses working on 24 developments, resulting in 390 new homes—125 of which were affordable—and 2,626 sq ft of new commercial space.
Jayne Bryant, Cabinet Secretary for Housing and Local Government, welcomed the initiative, saying: “It’s fantastic that through our support, the Wales Residential Property Fund will make accessing essential funding even easier for developers and help deliver more housing across Wales.
Delivering more homes—now and for the future—is a priority for the Welsh Government. That’s why working in partnership with the Development Bank is so important to increase the supply of affordable, good quality housing.”
The Development Bank of Wales also provides short-term property finance through the Wales Commercial Property Fund and the Green Development Incentive, helping to boost construction and regeneration throughout the nation.
