By 2039, the Wales Residential Property Fund aims to have supported the development of 4,450 homes across Wales. It’s an ambitious target, but one that reflects the scale of demand for high-quality, sustainable housing in every corner of the country.
Access to finance remains one of the biggest challenges for residential property developers. That’s exactly why the Development Bank of Wales created the Wales Residential Property Fund – to provide flexible, targeted finance that helps unlock stalled or delayed projects and bring forward new homes where they’re needed most.
The new fund is a major step forward in supporting developers of all sizes. It offers loans from £150,000 to £10 million for residential and mixed-use schemes, with terms of up to four years. The £117 million of initial capital will be recycled and reinvested as developments are completed and repaid, allowing us to deliver up to £770 million of investment by 2039. This structure means we can continue to support projects well into the future, amplifying the impact of the fund and the number of homes it helps deliver.
One of the fund’s core strengths is its flexibility. We know that every project and every site is different, so we’ve deliberately avoided rigid parameters. Instead, we work in partnership with developers from an early stage to help shape viable projects that align with Welsh Government priorities such as placemaking, sustainability and community benefit. It’s important that developments deliver long-term value not only for communities but also for the developers themselves.
We’re already supporting a wide range of projects, from family homes to apartment blocks, and from small mixed-use schemes to larger residential developments. These projects include developers who are new to the market as well as experienced builders expanding their portfolios. For many, our ability to be flexible and responsive has been key to making their projects possible.
Sustainability is a key consideration for us and for many of the developers we work with. That’s why, alongside the Wales Residential Property Fund, we’ve launched the second phase of our Green Development Incentive. This initiative rewards developers who go further in embedding sustainable construction methods into their projects.
Under the incentive, developers can receive a reduction of up to 2% on residential development loan fees if they meet certain sustainability criteria. These include achieving an EPC A rating or Passivhaus status, using non-fossil fuel heating systems, or incorporating lower-carbon construction methods. It’s an incentive designed to support and encourage greener building practices while recognising the financial pressures that developers face when adopting new technologies or standards.
We’ve already seen the benefits of this approach through projects where sustainability has been at the heart of the design from the outset. It’s particularly rewarding to work with developers who share our commitment to sustainability, because it demonstrates that environmental responsibility and commercial viability can go hand in hand.
Partnership working is central to what we do. We see ourselves not just as lenders, but as partners in development. Our team of 14 specialist development investors are based across Wales, bringing sector expertise and a detailed understanding of local markets. These relationships are built over time, often starting with early conversations long before a project begins.
Trust is an important part of that relationship. We want developers to see us as a long-term partner who can provide guidance, insight and support throughout the lifecycle of their project. Whether it’s making introductions to other professionals, visiting sites in person, or helping to de-risk projects through sound financial planning, we aim to add value beyond the loan itself.
We’re also keen to encourage new entrants into the market. Wales needs more developers who are innovative, committed to quality and focused on community impact. By providing finance that is accessible and tailored, we can help those developers get projects off the ground and contribute to local regeneration.
For anyone considering development finance, my advice is to come and speak to us as early as possible. Early engagement gives us the opportunity to discuss your plans, understand your challenges, and help shape the project so that it works financially and strategically. Surround yourself with professionals who understand the process – from planning consultants to architects and surveyors – because the more robust your team, the stronger your project will be.
The Wales Residential Property Fund is about more than just numbers. It’s about enabling the creation of homes that meet the needs of today and tomorrow – homes that are energy-efficient, well-designed and part of thriving communities. By combining financial flexibility with a focus on sustainability and partnership, we can support developers in building the kind of housing Wales needs for the future.
