A fund managed by US private equity group KKR and the Irish State has lent money towards the delivery of more than 800 new homes since it was set up last year to help ease a shortage of family homes as the property market recovers.

The joint venture between KKR and the Irish Strategic Investment Fund, known as Activate Capital, said at its launch last July that the €500 million fund would be capable of financing the construction of more than 11,000 homes.

Minister for Finance Michael Noonan provided figures on the level of uptake in a response to a parliamentary question tabled recently by Fáil TD Jack Chambers.

While Mr Noonan declined to say how much of the fund has been allocated, citing commercial sensitivity, the 800 homes equate to less than 8 per cent of the total 11,000 constructions initially targeted. Borrowers are being charged an average interest rate of about 10 per cent, though this varies, depending on the level of risk, Mr Noonan said. “The consistent feedback from developers and builders is that this specialist form of residential development lending is needed to kick-start the housing market,” he said.