Paragon Development Finance has provided an £8.8 million facility to Oakwood Group for a 51-home residential development in Broughton, near Preston. The funding covers site acquisition at Garstang Road and construction of the scheme, which includes 20 affordable housing units.
The development carries an anticipated gross development value of approximately £20 million and will be delivered by Oakwood Construction (Northern) Ltd, the group’s construction division. The transaction represents the latest in a series of deals between Paragon and Oakwood Group, following previous collaborations in Ormskirk, Lancashire.
Location and market context
Broughton is located approximately four miles north of Preston and benefits from access to the M55 and M6 motorways, with public transport links to Preston and rail connections to Manchester and Blackpool. The site sits within walking distance of Broughton High School, which has held an Ofsted rating of Outstanding since 2022.
The scheme comes as viability challenges continue to impact housing delivery across the UK. The inclusion of affordable housing units reflects ongoing requirements for mixed-tenure developments, while housing affordability concerns persist in the wider market.
Energy efficiency specifications
All homes in the scheme are designed to target an EPC A rating. Specifications include AAA-rated double-glazed windows, enhanced insulation throughout floors, walls and roofs, energy-saving combi boilers, solar panels and electric vehicle charging points.
These features make the scheme eligible for Paragon’s Green Homes Initiative, which offers a reduction in loan exit fees for developments where at least 80% of private homes achieve an EPC A rating, with remaining properties reaching a minimum EPC C rating.
Jonathan Ball, managing director at Oakwood Group, said: “This scheme has taken considerable time and effort to bring forward, and we are delighted to have reached this stage. Broughton continues to be one of the most desirable locations in the Lancashire area, offering a combination of excellent connectivity, high-performing schools and a strong community environment.”
Nigel Jackson, senior relationship director at Paragon Development Finance, who led the facility with support from senior portfolio manager Shannon Altimas, said: “We have seen first-hand the quality of homes Oakwood delivers and their ability to create developments that respond to local housing demand.”
The development forms part of ongoing residential construction activity in the North West region, where developers continue to target locations with transport connectivity and local amenities. The mix of private and affordable housing reflects standard planning requirements for schemes of this scale.
