20,000 new affordable homes will be built across the country,
helping more people realise the dream of owning their own home,
thanks to a £3 billion increase in a Government-backed loan fund
opening today.
The expansion of the Affordable Homes Scheme, which provides
low-cost loans to housing providers, will support thousands of
new homes. For the first time, the scheme can also be used to
upgrade existing properties, making them warm and decent for
tenants.
Providers will be able to apply for loans to carry out vital
building safety works, such as the removal of dangerous cladding.
Backed by the Department for Levelling Up, Housing and
Communities, the now £6 billion fund will help housing providers
access low-cost loans so they can expand their business, build
more affordable homes and upgrade their existing stock.
Housing Minister said:
“We know getting cost-effective loans can be a stumbling block
for many developers building more affordable homes or upgrading
their existing stock, so it is of the quality tenants
deserve.
“This new round opening today will not only improve the lives of
those already living in homes, but help thousands of families
benefit from new, high-quality, affordable housing.”
Launched in 2020, the scheme, delivered by ARA Venn, is already
helping 12 providers to deliver 6,290 new homes, with thousands
more to be built in the coming years.
Among the beneficiaries of the scheme is Watford Community
Housing. They first accessed the scheme back in November 2021 and
it helped them build 200 new homes, including the firm’s first
modular development.
As part of a second funding application made in December, they
are set to build a further 100 affordable homes.
Watford Community Housing Deputy Chief Executive Paul
Richmond said:
“We were delighted to work with ARA Venn for a second time under
the current Affordable Homes Guarantee Scheme. The funding
represents excellent value for the sector and offers best value
for fixed rate debt for our organisation.
“The benefit of using the Affordable Homes Guarantee Scheme in
terms of pricing over our 30-year plan is worth nearly 100
additional homes being delivered into our local community. This
has significant commercial benefit to us but more importantly has
a direct impact on the wider need to build more housing across
the country.”
Richard Green, Portfolio Manager for AHGS20 and Partner
at ARA Venn said:
“We are delighted that we will be able to provide low-cost loans
to private registered providers across England to now facilitate
investment in existing homes, in addition to new
ones.
“We look forward to continuing and building on the success of the
Affordable Homes Guarantee Scheme, that has already proved a key
source of funding for the sector.
“This timely expansion of the scheme allows us to support the
sector’s balancing of investment priorities between providing new
homes and ensuring the quality and energy efficiency of existing
homes.”
The Government is making good progress and is on track to meet
its manifesto commitment to build 1 million homes this Parliament
and the target to deliver 300,000 homes a year remains. This work
is being supported by £10 billion investment to boost housing
supply since the start of this Parliament. This is alongside the
£11.5 billion affordable homes programme, which will unlock £38
billion in additional private investment.
ENDS
Notes to editors:
- The Affordable Homes Guarantee Scheme 2020 provides low-cost,
flexible and long-term loans to help fund investment in new and
existing affordable homes across England, including those for
social rent, affordable rent and shared ownership.
- As part of the scheme, providers will be able to apply for
loans to help make homes fit for the future. These energy
upgrades, such as solar panels, could potentially save tenants
hundreds of pounds on their energy.
- The loans are funded by a capital markets bond programme that
has the benefit of a guarantee from the Department for Levelling
up, Housing and Communities.
- Eligible registered providers who would like further
information about the scheme, the scheme rules, and how to apply
should contact ARA Venn at ahgs@ara-venn.com
- ARA Venn is part of ESR Group, who have managed the
Affordable Homes Guarantee Scheme 2020 since its launch in 2020.
