A new state funded loans scheme in Ireland is expected to help SME developers build up to 7,500 new homes during the next five years.
The Irish property scheme is intended to help builders who have been unable to secure loans from traditional sources such as high-street banks.
The terms of the fund which is named Home Building Finance Ireland (HBFI) will see builders gain access to loans to be repaid over a 5-year period with a maximum limit of a £35m loan per company. The scheme will fund developments delivering between 10 and 200 homes.
In order to apply to the fund, the developer needs to have already submitted or secured planning permission for the development site, and the site must pass a commercial viability assessment by the HBFI.
Developers are also required to commit a minimum of 20 per cent equity for the project, but the value of the development site may be included.