RSLs receive £345m from European bank

10 Dec 09
The European Investment Bank is lending UK housing associations a record £345m to spend on regeneration schemes
By Neil Merrick

10 December 2009

The European Investment Bank is lending UK housing associations a record £345m to spend on regeneration schemes.

Thirty-five associations will be given money early next year for projects to demolish and rebuild homes, as well as to refurbish properties.

The deal was arranged by the Housing Finance Corporation, a not-for-profit finance company, and will provide associations with money for up to 30 years. Chief executive Piers Williamson said: ‘This will give housing associations certainty to deliver in areas of real housing need.’

The loan agreement was formally signed by ministers at a meeting of the British-Irish Council in Newcastle, Northern Ireland, on December 4. The largest chunk (£150m) is going to 11 social landlords in England, but Wales (£95m) and Scotland (£70m) are both getting £20m more than forecast when the deal was first announced in September. Five associations in Northern Ireland are sharing £30m.

Nick Bennett, chief executive of Community Housing Cymru, welcomed the funding. ‘This additional money will ensure we build even more affordable homes and communities,’ he said.

Scottish housing minister Alex Neil said: ‘This investment will provide a much-needed boost to house building in Scotland, creating and sustaining skilled jobs.’

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