Greener Homes Alliance

The Greener Homes Alliance (GHA) is our partnership with Homes England, providing development finance to small and medium-sized enterprise (SME) developers building energy-efficient new homes. It combines standard development funding with sustainability-linked incentives, supporting the delivery of greener housing across England. 

The Alliance is designed for SME developers delivering schemes in England that meet the programme’s sustainability criteria. To qualify, all homes within the scheme must be fossil fuel-free and have an average SAP score of 85+. 

Schemes meeting 4 or more additional sustainability criteria qualify for a 1.25% discount, and those meeting 6 or more qualify for the maximum available discount of 2% p.a., applied against our fixed rate, which starts from 8% p.a. before any discount. 

To achieve the maximum 2% p.a. discount, a scheme needs to meet 6 or more additional criteria, covering areas such as on-site affordable housing, biodiversity net gain, waste reduction, potable water usage, Modern Methods of Construction, Real Living Wage commitments and Zero Bills readiness. Meeting 4 or more criteria unlocks a 1.25% discount. Our expert team can guide you through each individual criteria point. 

Schemes need to achieve a minimum n average SAP score of 85 or above to be eligible, alongside being fully fossil-fuel free. Schemes reaching an average SAP of 92 or above (equivalent to EPC A) count this towards the additional criteria used to unlock a larger discount. 

A fossil-fuel free development doesn’t rely on gas, oil or other fossil fuels for heating or hot water, instead using electricity for heating through low carbon technologies such as such as air or ground source heat pumps. 

Loans through the Greener Homes Alliance range from £2m to £20m. 

Greener Homes Alliance loans are offered on a fixed-rate basis, starting from 8% p.a., with discounts applied to this rate reaching as low as 6% p.a fixed.

We can assist with houses and flats, mixed-use schemes (with less than 20% commercial content, subject to eligibility), build-to-rent and affordable housing, with a minimum of 5 units per scheme. 

GHA works in the same way as our standard development finance, with staged drawdowns and a land loan available on day one but adds a sustainability-linked interest rebate for schemes meeting the programme’s environmental criteria — and is only available for schemes in England. 

SAP (Standard Assessment Procedure) is the UK government’s methodology for assessing the energy performance of a home. It’s used to calculate a property’s EPC rating, based on factors like insulation, heating systems and renewable technology. 

An average SAP score of 85 or above is required for a scheme to be eligible, alongside being fully fossil-fuel free. Schemes achieving an average SAP of 92 or above, equivalent to EPC A, can count this towards unlocking a larger discount.

An EPC A rating is the highest energy performance band a home can achieve, reflecting excellent insulation, efficient heating and often on-site renewable generation such as solar PV. 

Fossil-fuel free homes typically use electric heating technologies such as air or ground source heat pumps, rather than using gas-powered boilers.

Gas boilers aren’t compatible with fossil-fuel free or Zero Bills standards and won’t meet the requirements of the incoming Future Homes Standard either, which effectively rules out gas heating in new homes from 2027. 

Air source heat pumps extract heat from the outside air to heat a home and its hot water, using electricity rather than gas. They’re one of the main low-carbon heating technologies used in energy-efficient new homes. 

Ground source heat pumps extract heat from the ground via buried pipework, offering a highly efficient, low-carbon alternative to gas heating, though typically at a higher upfront installation cost than air source systems.

Zero Bills™ homes are highly energy-efficient homes developed in partnership with Octopus Energy, designed so residents can benefit from zero energy bills for a guaranteed between 5-10 years. Schemes achieving Zero Bills status are well positioned to meet the Greener Homes Alliance’s highest sustainability tier. 

Biodiversity net gain (BNG) is a planning obligation in England that means new developments must leave a site’s biodiversity in a measurably better state than before development, typically through on-site habitat creation or off-site contributions.

Modern methods of construction refer to building techniques such as off-site manufacturing and modular or volumetric construction, which can speed up build programmes and improve energy performance compared with traditional on-site methods. 

The Future Homes Standard is an update to Part L of the Building Regulations for England, requiring new homes to produce at least 75% lower carbon emissions than homes built to 2013 standards. It effectively mandates low-carbon heating (such as heat pumps) and solar PV in new-build housing. 

The Future Homes Standard doesn’t explicitly ban gas boilers by name, but the carbon emissions targets are set at a level no fossil fuel heating system can meet — so in practice, gas heating won’t be viable in new homes built to the standard. The rules come into force on 24 March 2027, with a transitional period for schemes already underway running until 24 March 2028. 

Developers can prepare by designing schemes around low-carbon heating and on-site renewable generation now, rather than waiting for the standard to take effect, and by working with lenders and partners experienced in delivering energy-efficient homes. 

Evidence increasingly suggests energy-efficient homes can command a premium, driven by lower running costs and rising buyer demand for sustainable properties, though the exact uplift varies by location and market. 

Many buyers are placing greater value on sustainability credentials, particularly given rising energy costs, though willingness to pay a premium varies by buyer type and region.