Paragon backs £4m sustainable housing scheme in South London

By Bridging Loan Directory 28th August 2025

Paragon Bank’s Development Finance team has provided a £4 million facility to support the transformation of a Victorian villa in Nunhead, South London, into a sustainable nine-unit residential scheme.

The 22-month facility has enabled the acquisition of 41 Linden Grove, SE15, and will fund the development of nine energy-efficient flats across 7,362 sq. ft. The scheme is being delivered by Tikari Works, a new-to-bank client.

Having passed completion in June, the first build drawdown report has already been received, demonstrating strong early progress on site preparation. Demolition of the existing structure is expected to begin in the coming months, with sales anticipated to go on the market in November 2026.

The development is designed to meet Passivhaus standards, a rigorous construction standard which aims to help build more sustainable homes. Features include triple glazing and high-performance insulation, heat pumps, MVHR (Mechanical Ventilation with Heat Recovery) systems, solar panels and EV charging points.

All units are projected to achieve an EPC rating of A, qualifying the scheme for Paragon’s industry leading Green Homes Initiative, which rewards SME housebuilders for building energy-efficient homes.

To qualify for the scheme, at least five private units must be built within the development and 80% or more of these must have an EPC rating of A, with any remaining being at least EPC C standard.

The apartments will range from one to three bedrooms, offering a mix of layouts to suit a variety of buyers in a highly desirable part of South London.

The deal was led by Steve Mountain, Senior Relationship Director, with support from Olly Das, Portfolio Manager, on behalf of Paragon Bank.

Steve Mountain commented:

“This is an exciting new partnership for Paragon. The developer’s commitment to Passivhaus standards and qualifying for our Green Homes Initiative aligns closely with our sustainability goals, and it’s what makes us especially proud to support the scheme.

Nunhead is a vibrant, well-connected neighbourhood, and we anticipate strong demand for these high-quality, future-proof and unique homes.”

Nunhead, located in the London Borough of Southwark, is reputed for its village feel, wealth of green spaces and excellent transport links.

The development sits on the curve of Linden Grove, close to Nunhead Reservoir, and blends Victorian architecture with modern amenities, including several multiple rail and bus routes.

Southwark is one of London’s top boroughs for sustainable housing, ranking second in the capital for the proportion of homes with EPC ratings of C or above.

The SE15 postcode, which includes Nunhead and Peckham, continues to attract buyers seeking a balance of community, connectivity and vibrant culture.

Ty Tikari, Co-Director of Tikari Works, said:

“We’re thrilled to be working with Paragon Bank on this project. The team’s keen support for sustainable development is what stands them apart in the market, while their responsiveness throughout the funding process has been invaluable.

41 Linden Grove encompasses our commitment to delivering homes that are not just beautifully designed, but also future-proofed for a low-carbon world and changing climate.

We believe the combination of thoughtful architecture, energy efficiency and enviable location will make these homes truly special.”