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Hopkins: New £500 million funding deal to deliver over 4,000 affordable homes

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Hopkins: New £500 million funding deal to deliver over 4,000 affordable homes

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Published by Jon Land for 24dash.com in Housing and also in Central Government

Hopkins: New 500 million funding deal to deliver over 4,000 affordable homes Hopkins: New 500 million funding deal to deliver over 4,000 affordable homes

Housing minister Kris Hopkins today welcomed a deal that will release £500 million additional funding to build new affordable homes across the country.

The new investment, secured through an agreement with the European Investment Bank, will help deliver up to 4,300 new affordable homes to rent.

The funding will form part of the £3.5 billion Affordable Housing Guarantees programme, which enables housing associations to use a government guarantee to secure private investment at more competitive rates than they would otherwise obtain.

Kris Hopkins said: “Today’s deal with the European Investment Bank is a vote of confidence in our ongoing efforts to restore confidence to our housing market and get Britain building.

“This £500m investment will help deliver up to 4,300 new affordable homes across the country, on top of the 170,000 affordable homes we’ve already delivered since 2010.”

Jonathan Taylor, European Investment Bank Vice President responsible for the UK, said: “The initiative launched today will significantly enhance construction of affordable housing by housing associations across the country.

“The European Investment Bank recognises the importance of long-term investment in the housing sector and is pleased to work with the UK government and experienced housing partners through this new, large scale programme.

“Following the £500 million EIB loan formally agreed today, we look forward to further engagement with the UK housing sector in the coming months.”

Richard Blakeway, London's deputy mayor for housing, land and property, said: “This new funding will help many hard working people who need, and rightly deserve, decent low cost homes. Tackling the demand for housing is a key priority and we all need to work closely together to boost affordable housing supply in London and across the UK.”

Mr Hopkins also confirmed the first eight housing associations to receive funding through Affordable Housing Guarantees. They are:

• Devon & Cornwall Housing Limited, who will borrow up to £85m to build 887 homes in those counties.
• Hexagon Housing Association will borrow up to £12.5m to build 74 homes in Greater London and the South East.
• First Wessex will borrow up to £88m to build 589 homes in Hampshire and Surrey.
• Great Places will borrow up to £50m to build 674 homes in Manchester and the North.
• Wales and West Housing Association will borrow up to £25m to build 251 homes in Wales.
• Adactus will borrow up to £27m to build 344 homes in Greater Manchester and Lancashire.
• Home group will borrow up to £61m to build 642 homes in England.
• Paradigm will borrow up to £65m to deliver up to 594 homes across South and East England, and Greater London

Together, they will receive up to £400 million to build, own and manage up to 4,000 homes.

Responding to today's announcement, Home Group chief executive Mark Henderson, said: “We’re delighted to have been selected as one of only seven housing associations in this first wave of Affordable Housing Guarantee funding.

“Greater access to funding at favourable rates will assist us to provide much needed homes and provide great value for money for our customers and the taxpayer.

“As one of the UK’s largest affordable housing developers this finance will contribute to the development of 642 homes throughout England as part of our existing development programme.”

More information on the Affordable Housing Guarantees scheme is available here.

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