Loan guarantees for affordable Homes up to £3.5Bn
The Government has revealed that £3.5 million of funding for the New Loan Guarantee Scheme will be effectively ring fenced for affordable homes.
The Communities and Local Government department announced yesterday that it will guarantee up to £3.5 billion of debt to enable Housing Associations to build new homes to rent out to families in need.
In addition, the scheme is also offering to underwrite £3.5 billion of private rented sector homes and additional £3.0 billion as a reserve for either tenure type, depending on the demand shown.
The Communities and Local Government Department (CLG) expects that this initiative, when combined with various government grants, will enable the delivery of up to 30,000 new homes for the rental market. The government also confirmed that the Housing and Finance Corporation will administer the affordable homes guarantee, and that a stand alone subsidiary called Affordable Housing Finance will be set up to run the scheme.
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