Initiative Ireland has launched a new sustainable finance partnership for the construction of residential homes with Fairfield Real Estate Finance.

Initiative Ireland aims to significantly increase the scale of its lending activity by €600m which will enable small, medium and large-scale developers to deliver 5,000 new homes nationwide over the next three years.

It said this will support over 3,000 construction jobs and will create 20 new finance jobs at Initiative Ireland.

Initiative Ireland specialises in funding social, affordable and mid-market housing developments nationwide. An impact finance company, its focus is on delivering environmental and social impact through ethical and innovative financial solutions.

Initiative Ireland is supported by Enterprise Ireland as a High Potential Start-Up and is headquartered at NovaUCD.

It aims to deliver financially inclusive and sustainable products to tackle social and environmental challenges.

The company last year announced a new partnership with the Credit Union Development Association (CUDA), which will enable Irish credit unions to provide funding to approved housing bodies across Ireland.

Between the CUDA partnership and the partnership announced today, Initiative Ireland is now positioned to deliver over €1.5 billion of funding to the market over the next five years.

Padraig W Rushe, CEO of Initiative Ireland, said that over the last five years, the company has worked with its impact investor community to deliver housing projects across the country, for social and environmental impact.

"We've built strong relationships with our borrowers and partners. We understand the urgent need for fair and flexible finance, and we aim to work with new borrowers to bring sustainability to the Irish housing market, helping to make housing security more accessible for everyone," Mr Rushe added.

Minister for Housing, Local Government and Heritage Darragh O'Brien said he welcomed news of increased funding competition within the Irish finance market, to support the delivery of social and affordable housing, in addition to the creation of new jobs.

"It is also great to see Enterprise Ireland-backed companies, such as Initiative Ireland, successfully attracting and building partnerships with globally recognised firms, delivering and supporting new jobs here in Ireland as we work to stabilise the jobs and housing market," the Minister added.