A SCOTTISH house-builder has secured £11.5 million from Homes England to build almost 500 new homes.

Stewart Milne Homes has been given the cash through the Home Building Fund for houses in North West England with a development value of £125m.

The funding will enable the independent housebuilder’s North-West operation to commence new developments in Chester, Prescot, Congleton and Hooton which will help to address the housing shortfall.

Working in partnership with Homes England, Stewart Milne Homes North West secured the loan from a new £3 billion fund, with a target of delivering 300,000 new houses per annum.

A total of 500 units, comprising 125 affordable homes, are planned in these new developments, two of which will get underway immediately with the remainder to follow in the next two months.

Stewart Milne Homes North West is a division of Stewart Milne Group whose chief executive, Glenn Allison, believes the fund is a major step forward in addressing the country’s long-term housing challenge.

He said: “Private, independent developers cannot make the up-front investment required to close the gap between supply and demand quickly enough. This funding will ensure we are able to deliver outstanding new communities for local residents and help deliver the additional housing that is required to meet the UK Governments targets.”

Nigel Barclay, head of SME Investment at Homes England, said: “Stewart Milne Homes are showing ambition with their plans to build another 500 new homes including 125 affordable homes which will help make a difference to people.”

Stewart Milne Homes North West, established in 2006, has doubled the number of units delivered in North West England in the last 12 months and increased its direct workforce in the region from 65 to 85. This, along with its customer service, was recognised when the company was named Housebuilder of the Year at Insider’s Property Awards.

Paul Challinor, Stewart Milne Homes North West MD, said: “We will seek to further increase our house-building through the acquisition of larger sites in prime residential locations in the North West of England.”