£44m low interest loan to drive HA's green homes plans
Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance
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Housing association Home Group has secured a £44 million loan to help it build new green homes and make improvements to its existing properties.
The HA has received the multi-million pound loan from The Housing Finance Corporation and the European Investment Bank at a fixed rate of interest for the life of the 30-year repayment period.
Jenny Makin, Home Group's chief financial officer, said the loan would enable the 55,000-home provider to continue to meet its objectives of developing new homes and ensuring every existing property exceeds decent homes standards.
“As a not for profit company with a social purpose at its core we’re delighted the THFC and EIB have made this low interest loan available," said Ms Makin.
“Value for money is something which we always strive for at Home Group. This low interest loan will allow us to finance new high quality properties and improve existing homes at rates which are very favourable compared to the rest of the market.”
Home Group, which has secured the money at a rate of 3.789%, will build almost 350 new homes at level four of the code for sustainable homes with the funds. The properties will employ high levels of wall and loft insulation, airtight building techniques, energy efficient boilers and renewable energy including solar panels. The homes will use at least 25% less Co2 than a standard home.
The homes will be built at seven separate developments, one in the North East and six in London.