Challenger bank OakNorth has provided residential developer Barry Howard Homes (BHH) with a £12m loan to purchase a 11.83-acre piece of land located in Northampton.
BHH plans to develop 139 residential units at the site and has forward sold 83 units to affordable housing property company Heylo Housing under the Homes and Community Agency’s shared ownership affordable housing programme (SOAHP).
Once completed, the scheme on Towcester Road in the Hill Farm area of Northampton will consist of 56 detached houses, 78 semi-detached houses and five two-bedroom apartments
BHH founder Barry Howard said: “This is one of the fastest-growing regions in the UK, so we know there is avid demand for new housing, as evidenced by the fact that we have already secured a sale of 83 units from Heylo. With OakNorth’s support, we will be able to bring some much-needed new homes to the region and look forward to working with the team on additional transactions in the future.”
Founded in 1998, BHH has built more than 1,300 affordable and private homes in the UK over the last 20 years and has a projected GDV of £170m between now and 2022.
Hemesh Patel, property finance director at OakNorth, added: “Northampton is amongst the fastest moving property markets in the UK with average homes going under offer in 27 days after being listed - 20 days quicker than the UK average. Barry has extensive knowledge of the sector and has successfully completed a number of large-scale residential projects in the past. The fact that a large portion of the units have already attracted interest from Heylo demonstrates that Barry and his team are very aware of market demand and how to meet it.
OakNorth secured a £154m investment in October last year and unveiled plans to lend a further £1.5bn to UK businesses over the next 12 months. Last week, the challenger bank provided a £15.3m loan to Coronado to develop a luxury residential development in the centre of Wimbledon Village.