The North East Property Fund has reached the investment milestone of £50million to help kickstart the development of small-scale property schemes throughout the region.

Managed by FW Capital, the fund was established in 2017 in response to demand for smaller construction and property development financing. It is backed by the North East Local Enterprise Partnership (North East LEP). Since the fund started in 2017 FW Capital has supported the construction of 227 houses across 51 developments, the build out of 7,589 sq ft of commercial space and created and safeguarded 750 jobs.

One North East success story is local property developer Bell Blue who has recently received a £1.435million loan from the North East Property Fund to support an exclusive development of five high spec homes in the stunning rural location of Satley, County Durham. 

Tony Cullen, Fund Manager at FW Capital, said: “The North East Property Fund has played an important role in bringing new housing and small-scale commercial property schemes to the region. It’s made a significant impact by unlocking finance for smaller property developers like Bell Blue who are meeting the growing demand in the North East for quality new homes as seen with their latest development in Satley.

"Good quality housing in the right locations is still in demand despite what is being reported nationally. This is perhaps best demonstrated from the fact we have seen sales across ten development sites we are currently funding and have received more than £9.5m of repayments since April 2023.”

The Northern Echo: Good quality housing in the right locations is still in demand Good quality housing in the right locations is still in demand (Image: Unsplash)

Matt Houghton, Blue Bell Director said: “This is the third loan we have received from the North East Property Fund and it has had a real impact on the success and growth of our business. We’re already attracting prospective homeowners who are interested in the new development, with 4 or the 5 plots still currently available for sale.”

Darlington based Bell Blue focus on small developments of bespoke new build homes consisting of 3 to 10 units. The two previous loans from FW Capital and the North East Property Fund supported two successful housing schemes.

The first in 2020 was to support the construction of four family homes in Toft Hill, Bishop Auckland, County Durham and in 2022 the build of five new homes on the site of a former equestrian centre in Hargill Road, Howden-le-Wear.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership, said: “In challenging economic times it’s always important to plan for the future, and that’s exactly what the the North East Property Fund has allowed us to do.

"The funding provided to local businesses ensured construction projects continued during the coronavirus pandemic, and it has since supported developers impacted by rising inflation.”

The North East Property Fund offers loans from £250,000 up to £2million for residential and non-speculative commercial developments in Tyne and Wear, Northumberland and County Durham. The Fund can provide up to 100% of build costs for suitable schemes with repayment terms available up to two years.