By Christopher Jones
Copyright walesonline
From first-time builders to established developers, the Development Bank of Wales is helping shape the future of Welsh communities – one project at a time.
As demand for sustainable, well-located homes and workspaces rises, the Development Bank of Wales is widening access to short-term finance for both first-time builders and established developers.
Through the Wales Commercial Property Fund, the Wales Residential Property Fund and a Green Development Incentive, it offers loans from £150,000 to £10 million to unlock residential, mixed-use and commercial schemes.
In 2024/25 the bank delivered £48 million of property development funding, a 26% year-on-year increase. That capital backed 24 projects across Wales, supporting the creation of 390 new homes, including 125 affordable properties, along with 2,626 sq ft of additional commercial space that will serve growing local economies.
Flagship low-carbon scheme in Tonyrefail
The largest single commitment to date is £17.5 million for Tirion Homes’ Parc Eirin in Tonyrefail, a mixed-tenure neighbourhood being delivered by contractor Morganstone. The scheme will bring forward 114 EPC A-rated homes by 2027, combining rooftop solar, communal battery storage and ground source heat pumps to cut running costs and emissions.
Public-private partnerships are also playing an important role in delivering high-quality, low-carbon housing, with the scheme being supported by £7 million from the Welsh Government’s Innovative Housing Programme, comprising £3.6 million via the Low Carbon Fund and £3.9 million through the Modern Methods of Construction Fund.
First-time builder finds a foothold in Merthyr Tydfil
A £1.2 million loan from the Wales Property Fund enabled Bishop Bayliss Developments to purchase land and fund the construction of four homes at Grove Park in Merthyr Tydfil. The finance has already been repaid, marking a successful move from renovation to new-build development for the business.
Eco homes at Maes y Teirw
On a brownfield site near Carmarthen, Mentrus Developments is creating Maes y Teirw, a 21-home scheme with 17 spacious family houses and four affordable three-bedroom properties. Each home is designed with solar panels and air source heat pumps. With strong transport links and local amenities, the development is attracting families and commuters alike. Phase one is nearing completion, with phase two moving towards internal fit-out.
New funding to deliver thousands of homes
The newly launched £117 million Wales Residential Property Fund offers loans of up to £10 million, covering up to 100% of build costs for terms of up to four years. This fully recyclable pool of capital is expected to unlock £770 million of total investment by 2039, supporting the delivery of 4,450 homes.
To encourage greener specifications, the Green Development Incentive reduces residential development loan fees by up to 2%, subject to green standards. This is helping to accelerate the construction of energy-efficient homes across Wales.
The Development Bank of Wales offers more than just finance – it provides confidence, flexibility and partnership.
As demand for sustainable, affordable housing grows, its role in enabling impactful development has never been more vital.
Find out more at developmentbank.wales
