Affordable Housing gets £225m boost

Tuesday March 5th, 2013

Government Opportunities (GO) Housing Minister, Mark Prisk, has unlocked a multi-million pound government fund to deliver up to 15,000 extra affordable homes.

Affordable housing providers in England will be able to bid for a share of up to £225m to deliver the additional new homes.

Mr Prisk has launched bidding guidance for the scheme, which is based on the highly successful and over-subscribed Affordable Homes Programme.

The Affordable Homes Programme is set to deliver 170,000 new homes by 2015 – with almost 63,000 of these already completed.

On top of this, today’s fund could help deliver up to 15,000 additional new affordable homes. The fund is intended to work alongside the government’s Affordable Housing Guarantee, which reduces the risk for lenders by providing a government pledge to underwrite debt taken out on eligible housing projects.

Providers can apply to combine today’s cash with the guarantee: a share of the £225m funding can be used as a grant towards a project, while the guarantee allows them to borrow the remaining finance at below market lending rates – enabling them to deliver more affordable homes.

Full eligibility requirements and details on how the housing guarantees will be structured were published in the scheme rules in February.

The government has launched an invitation to tender, seeking delivery partners for the running of the guarantees schemes.

The Greater London Authority will publish its own prospectus for how the Affordable Housing grant will operate in London shortly.

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