AN affordable housing provider has revealed £40m expansion plans to build on rising demand.

MJ Gleeson says the cash injection will help open more construction sites.

Bosses at the builder, which has developments in Newton Aycliffe and Chilton, near Ferryhill, County Durham, also hope the funding will take sales to 900 by the summer.

The backing, from Lloyds Bank Commercial Banking, includes a £20m pot open for operating purposes and a separate £20m tranche, which officials say will help Gleeson strengthen its market place standing and get more first-time buyers on the property ladder.

The business focuses on building homes on brownfield land across the North, with offices in Chester-le-Street and Wynyard Park, near Stockton, used to support its goals.

Jolyon Harrison, chief executive, said Lloyds’ support will allow the firm to move up a level.

He said: “The renewed confidence in the housing market continues to build appetite for new homes in great locations.

“The support Lloyds has provided will enable us to meet this upturn and strengthen our market position.

“The team at Lloyds has worked closely with us to understand our business plan and this funding will help us activate the next stage of our growth with confidence.”

Earlier this year, Gleeson, which has homes in New Kyo, near Annfield Plain, in County Durham, and Sunderland, revealed buyer demand allied to builders’ need for land was helping cement its industry reputation.

According to latest results, accounting for the six months to December 31, the business saw sales and profit rise considerably.

Officials said revenue lifted 52.1 per cent to £64.8m, while operating profit was 182.5 per cent better off at £11.3m.

Such achievements, said David Hunt, Lloyds’ relationship director, make Gleeson an attractive proposition.

He added: “We have a long-standing relationship with the business and its success is evidence of its ambitious and experienced management team.

“This will give the company flexibility to unlock value from existing assets and invest in additional sites and we look forward to seeing the business create more homes for families.”

The firm plans to build properties in Peterlee, east Durham, and Scarborough, and aims to open an office in Liverpool later this year to maintain its expansion.