Short-term Supportive Housing Provider, D2 Propco, to Expand Accommodation Portfolio Across England & Wales, Following £28.5m Loan From OakNorth

WHY THIS MATTERS
OakNorth’s £28.5m loan to D2 PropCo highlights the growing role of specialist lenders in addressing structural challenges in the UK housing market. With rising demand for temporary accommodation driven by housing shortages and cost-of-living pressures, local authorities are increasingly reliant on private sector partners to provide suitable, scalable solutions.

Financing models like this enable operators to expand supply more quickly than traditional public sector routes, while also improving the quality of accommodation available to vulnerable individuals and families. It also reflects a broader trend where banks are supporting socially impactful infrastructure—blending commercial lending with measurable social outcomes. As demand continues to rise, access to flexible, growth-oriented capital will be essential for providers operating in this space.

OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has provided a £28.5m loan to D2 PropCo, a specialist provider of short-term supportive housing across England and Wales. 

Founded in 2017 by friends Duncan Evans and Simon Dibley, D2 PropCo works closely with local authorities to provide high-quality temporary accommodation for vulnerable adults and young people who require safe and stable housing support. The company’s portfolio currently spans more than 164 properties across England and Wales, providing over 600 rooms for individuals and families who would otherwise face homelessness or unsuitable temporary placements. 

The £28.5m facility from OakNorth will support the continued expansion of D2 PropCo’s accommodation platform across England and Wales. The financing will enable the business to refinance existing facilities while also supporting the acquisition and refurbishment of additional residential properties, allowing the company to grow its supply of purpose-managed accommodation for local authorities. 

Demand for temporary accommodation has increased significantly across England and Wales in recent years. Rising housing costs, a shortage of social housing, and wider cost-of-living pressures have resulted in more individuals and families requiring short-term housing support, placing additional pressure on local authorities to secure suitable accommodation options. D2 PropCo helps councils meet this need by delivering safe, well-managed housing that offers a more appropriate alternative to hotels or bed-and-breakfast placements.

Duncan Evans, Founder & CEO of D2 PropCo Ltd, commented on the transaction: “We founded D2 PropCo with a clear mission – to provide safe, stable accommodation for people who need support during some of the most challenging periods of their lives. Demand for this type of housing has grown significantly across England & Wales, and local authorities are under increasing pressure to find suitable solutions for vulnerable individuals and families. This financing from OakNorth allows us to expand our portfolio and continue working alongside councils to deliver high-quality, supportive housing where it is needed most.” 

Navin Dabasia, Director of Debt Finance at OakNorth, added: “D2 PropCo plays an important role in the housing ecosystem, supporting local authorities in delivering safe, stable accommodation for individuals and families in need. As pressures on housing supply and cost of living continue to grow, it’s increasingly important that organisations providing this type of accommodation have access to the capital they need to scale responsibly. Duncan and his team have built a strong platform with a clear social purpose and an established track record of working closely with councils across Wales, and we’re pleased to support their continued expansion.”

FF NEWS TAKE
This deal shows how niche lenders like OakNorth are stepping into gaps that traditional funding models often struggle to address. By backing operators focused on supportive housing, they’re enabling faster, more targeted responses to urgent social needs.

At the same time, it underlines the increasing overlap between finance and social infrastructure. Housing is no longer just a policy issue—it’s becoming a financing challenge that requires private capital and specialist expertise. If more capital flows into this segment, it could help alleviate pressure on local authorities, but long-term impact will depend on how sustainably these models can scale alongside rising demand.

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