Paragon Development Finance has provided an £8.8 million development finance facility to support Oakwood Group's delivery of a 51-home residential scheme in Broughton, near Preston.
The funding will enable the North West developer to acquire a site at Garstang Road, Broughton, and build 51 new-build homes, including 20 affordable housing units. The scheme is expected to help increase housing supply in an area attracting strong demand from families and owner-occupiers.
Broughton sits around four miles north of Preston and combines a semi-rural setting with strong transport connections and access to local amenities. The site benefits from proximity to the M55 and M6 motorways, direct public transport links into Preston, and rail connections to Manchester, Blackpool and other regional centres. It also sits within walking distance of Broughton High School, which has held an Outstanding Ofsted rating since 2022 and is regarded as a key attraction for families moving to the area.
The development carries an anticipated gross development value of approximately £20 million and will be delivered by Oakwood Construction (Northern) Ltd, Oakwood Group's construction business. Nigel Jackson, senior relationship director at Paragon Development Finance, led the facility, with support from senior portfolio manager Shannon Altimas.
This deal marks the latest between Paragon and Oakwood Group, building on a longstanding relationship that has previously supported schemes in locations including Ormskirk, Lancashire.
Every home in the scheme has been designed with sustainability at its core and is targeting an EPC A rating. Features will include:
- AAA-rated double-glazed windows
- enhanced insulation throughout floors, walls and roofs
- energy-saving combi boilers
- solar panels and electric vehicle charging points
These features make the scheme eligible for Paragon's flagship Green Homes Initiative, which rewards developers delivering highly energy-efficient new homes through a reduction in loan exit fees. To qualify, at least 80% of private homes must achieve an EPC A rating, with any remaining properties reaching a minimum EPC C rating.
"This scheme has taken considerable time and effort to bring forward, and we are delighted to have reached this stage," said Jonathan Ball, managing director at Oakwood Group.
"Broughton continues to be one of the most desirable locations in the Lancashire area, offering a combination of excellent connectivity, high-performing schools and a strong community environment.
"Our focus is on delivering high-quality homes that meet the needs of a wide range of buyers while incorporating sustainability measures that help reduce energy consumption and future running costs. Having a funding partner that understands our business and shares our long-term approach has been invaluable throughout the process."
"We are pleased to support Jonathan Ball and the Oakwood team once again on what is an important development for the area," said Nigel Jackson, senior relationship director at Paragon Development Finance.
"We have seen first-hand the quality of homes Oakwood delivers and their ability to create developments that respond to local housing demand.
"Broughton is an attractive location with excellent amenities, strong transport links and highly regarded schools, making it particularly appealing for families. The inclusion of affordable housing alongside energy-efficient homes will help ensure the scheme delivers long-term benefits for the local community."
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