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Housing trust loaned £5 million by council to build more affordable housing

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Housing trust loaned £5 million by council to build more affordable housing

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

Housing trust loaned 5 million by council to build more affordable housing Housing trust loaned 5 million by council to build more affordable housing

A council has approved a £5 million loan to a housing association in a bid to build more affordable homes.

East Lindsey District Council also promised taxpayers a return of nearly £1 million on the investment over five years.

The money has been loaned to New Linx Housing Trust, part of Waterloo Housing Group, in what councillors described as an "innovative" move.

The housing trust will be able to use this money to fund the building of new social housing within the district.

ELDC’s portfolio holder for finance, Councillor John Upsall, said: “This is another great example where by looking outside the box and thinking differently, we can secure greater benefits for the community both financially and ultimately through the services that we provide, and at the same time allow New Linx Housing to build additional much-needed affordable housing within the district.

“We will ensure adequate security measures are in place before any loan is confirmed, but very much hope that we can work with New Linx Housing Trust to make this happen.”

Interest on the secured loan could earn the council in the region of £962,500 over five years.

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