The first investments have been initiated from the £100 million Housing Growth Partnership.

The scheme is a joint venture (JV) launched between Lloyds Banking Group and the government in July 2015.

It will see between £500,000 and £5m invested in housing developments alongside smaller builders as part of a drive to increase the supply of new homes.

Both Lloyds and the government have put £50m into the pot, which expects to make around 50 investments and provide an additional 2,000 UK homes over three years.

Cambridgeshire based house builder Campbell Buchanan has now secured a £1.7m investment to fund the development of 40 new homes in Brington.

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The first phase of the project was recently completed and is on schedule to welcome its first homeowners by spring 2017.

In addition, the Partnership has also completed investments with Devonshire Homes in the South West and AMA Homes in Edinburgh.

Devonshire Homes secured £2m of equity to help build 250 properties a year across its regional markets from 2017, while AMA Homes received a £3m investment to complete a 34 unit townhouse and apartment development in central Edinburgh.

Andrew Hulme, CEO of the Housing Growth Partnership, said: "The supply of housing is a key concern in relation to the UK’s long-term prosperity and small and medium-sized housebuilders are fundamental in helping close that gap.

"Through this partnership we are committed to providing experienced housebuilders with the right capital to accelerate the supply of new homes in areas of high demand and under supply."

(LM)