London bank provides £6.55m loan for residential unit development

A London bank has announced that it has completed a £6.55m loan for the development of six new residential units.

OakNorth Bank has provided the loan to Hampstead Homes Southern, which will be building the “luxury” homes in North West London, near Heathrow Airport.

The company said that it had seen other banks pulling back from lending during the coronavirus, and that the deal with OakNorth has made the development of the six new homes possible.

Hampstead Homes Southern commented: “As a result of Covid-19, we’ve experienced first-hand, banks retrenching from the market and pulling back from lending, we were grateful when the team at OakNorth Bank was willing to help, so we’re glad we could get this over the line quickly.

“We hope to work with OakNorth Bank again soon on future developments.”

Priya Chauhan, debt finance director at OakNorth Bank, added: “London’s high-end residential property market has always been an attractive investment, but is seeing a further boost in demand as a result of more flexible working from Covid-19 and the removal of stamp duty.

“We were delighted to support the team at Hampstead Homes – they have successfully completed many projects across London and the South East, so have a clear view as to what buyers are looking for.

“We look forward to seeing how the project evolves and look forward to working with them again.”