Paragon Launches Green Homes Initiative
Paragon Development Finance has launched a Green Homes initiative to support SME housebuilders developing new domestic properties with the highest energy performance standards.
Under the scheme, developers delivering homes with an Energy Performance Certificate rating of A will receive a 50 per cent reduction on loan exit fees.
To qualify, at least five private units must be built within the development and 80% or more of these must have an EPC rating of A, with any remaining being at least EPC C standard.
The initiative is designed to support the UK Government’s target of net zero carbon emissions by 2050 and reducing emissions by 78 per cent by 2035. The Future Homes Standard, from 2025, will require new homes built to produce between 75 per cent and 80 per cent fewer carbon emissions.
Government data showed that of the 222,966 EPC ratings lodged for new domestic dwellings last year, just 3,457 were rated at EPC A level. The vast majority, 81 per cent, were rated at EPC B.
Deborah Bateman, sustainability director at Paragon Banking Group, said: “It’s vital that we support customers across our business lines on the journey to net zero and we are looking at ways we can help them to improve both their own operations and also the product they produce. We want to ensure there is a tangible benefit to them for doing so and we believe this initiative will be popular with SME housebuilders as they develop the green homes of the future.”