Development Bank of Wales launches £117 million residential property fund to boost housing development
Development Bank of Wales launches £117 million residential property fund to boost housing development
Developers in Wales can now access up to £10 million in finance for residential and mixed-use projects, as the Development Bank of Wales launches its new Wales Residential Property Fund.
The £117 million fund, backed by Welsh Government, is aimed at supporting SME developers with flexible loans ranging from £150,000 to £10 million, repayable over four years. Crucially, loans of up to 100% of build costs are available for both speculative and non-speculative developments.
The new fund consolidates two previous initiatives, the Wales Property Development Fund and the Wales Stalled Sites Fund, into a single, streamlined source of support. The funding is fully recyclable, and is expected to generate a total investment impact of £770 million by 2039, enabling the construction of 4,450 new homes.
A second phase of the Green Development Incentive is also being launched, offering £60 million in low-cost loans over the next two years. This incentive targets developers creating thermally efficient and low-carbon homes, with discounted interest rates available.
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The Development Bank reported a 27% increase in property development funding for the financial year ending 31 March 2025, with £48 million invested—up from £38 million in 2023/24. This funding supported 23 property businesses and delivered 390 new homes, 125 of which were affordable. The investments also contributed 2,626 sq. ft of new commercial space.
“SME developers are delivering social and economic value to communities throughout Wales,” said Nicola Crocker, Property Fund Manager at the Development Bank of Wales. “The new Wales Residential Property Fund gives the market a clear, competitive offer—tailored to support sustainable, energy-efficient developments.”
Jayne Bryant, Cabinet Secretary for Housing and Local Government, welcomed the launch: “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.”
In addition to the Wales Residential Property Fund, the Development Bank offers short-term finance through the Wales Commercial Property Fund and the Green Development Incentive, supporting residential, mixed-use, and commercial projects across the country.
