Homes England and Octopus Real Estate have launched the second phase of the Greener Homes Alliance, committing GBP 150 million (US$ 194 million) to support small and medium-sized (SME) housebuilders in England.

This initiative aims to facilitate the construction of high-quality, energy-efficient homes by providing loan financing, with GBP 42 million (US$ 54 million) contributed by Homes England's Home Building Fund. In the first phase, initiated in 2021, the alliance funded over 550 sustainable homes, with more than 40% achieving an Energy Performance Certificate (EPC) rating of A. All homes secured a Standard Assessment Procedure (SAP) score above 86, surpassing the UK average EPC rating of D and SAP score of 67. 

Phase two introduces ten new criteria to promote sustainability, including the use of modern construction methods and paying a real living wage to on-site workers. Developers meeting at least four criteria can receive a 1.25% interest rate discount, while those meeting six or more are eligible for a 2% discount. All funded projects must be fossil fuel-free and achieve an average SAP score of 85 or higher.