DCLG announces £500m deal to fund affordable housing

Out-Law News | 08 Jan 2014 | 1:06 pm |

The Government has secured a £500 million investment through an agreement with the European Investment Bank (EIB) to help the delivery of up to 4,300 affordable homes for rent, Housing Minister Kris Hopkins has announced. 

The Department for Communities and Local Government (DCLG) said in a statement that the funding is part of its £3.5 billion Affordable Housing Guarantees programme under which the Government provides guarantees to enable housing associations to secure private investment at competitive rates.

"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," said Hopkins. "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."

EIB vice president Jonathan Taylor said that the deal will "significantly enhance construction of affordable housing by housing associations across the country".

"The EIB 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," he said.

Hopkins also announced the first eight housing associations to receive funding under the programme, including Hexagon Housing Association and Paradigm. The eight associations will receive up to £400m in total for to help build, own and manage up to 4,000 homes.