HUNDREDS of homes are set to be built in Tiverton and across Devon after a construction company secured millions of pounds worth of funding as it seeks to expand its operations.

Devonshire Homes, based in Tiverton, has been awarded £11 million of finance to support its strategy for growth from the Lloyds Bank Commercial Banking and the Housing Growth Partnership.

The firm, which has an annual turnover of £30 million, is hoping to build around 250 homes every year from 2017 onwards across Devon, Somerset and Cornwall.

The first site to benefit from the funding is in Cullompton in Devon where the business is building 100 one, two, three and four bedroom properties, aimed at first time buyers and those looking to move up the property ladder. All homes on the site are set to be completed by 2018, and will be available in both traditional and contemporary style.

The finance secured for the Cullompton site consists of £4million of debt finance from Lloyds Bank Commercial Banking’s mid-markets team and £2million of equity from Housing Growth Partnership.

Steve Russell, managing director of Devonshire Homes, said: “We’ve seen a continued recovery in the housing market since the recession, and people are now confident to make steps to either buy their first homes or invest in a larger property.

“The support from Lloyds Bank and the Housing Growth Partnership will help us maximise on the growing demand for high quality property choices in the area.

“We’ve entered a new phase of growth for the business and in addition to this, we’ve secured a £5million revolving credit facility with an accordion to £8m with Lloyds Bank giving us more opportunities to develop new sites.”

The Housing Growth Partnership, which was launched in 2015 by Lloyds Bank Commercial Banking and the Homes and Communities Agency, is a dedicated equity investor for the residential development sector.

It has £100million of committed equity and the development with Devonshire Homes is one of the first Housing Growth Partnership investments to complete, kick starting its goal of providing 2,000 new homes across the UK.

Mark Newman, relationship director at Lloyds Bank Commercial Banking, said: “Devonshire Homes is a successful local company that has made the commitment to tackle the housing shortage, and offer local residents affordable homes. By securing the recent funding package, we’ve been able to help the company on its way towards building 250 new properties by 2017.”

Andy Hulme, chief executive at Housing Growth Partnership, said: “We’re committed to supporting regional builders across the UK and our investment with Devonshire Homes is typical in that we are supporting an established and respected business to deliver their growth plans by providing them with the capital they need to build more homes.”