Expanded Affordable Homes Guarantee Scheme opens

The AHGS opened in 2021 with £3bn of funding. It is managed by investment manager ARA Venn under a concession agreement from the government.

The aim of the fund is to provide lower-cost fixed-rate debt to registered providers to boost the supply of affordable housing, including homes for social rent, affordable rent and shared ownership.

The loans are funded by a capital markets bond programme guaranteed by DLUHC and secured against the providers’ existing portfolios.

DLUHC said the scheme was already helping 12 providers to deliver 6,290 homes. Paul Richmond, deputy chief executive of Watford Community Housing, said the funding “represents excellent value for the sector” and offers “best value for fixed-rate debt for our organisation”.

The housing association first accessed the scheme in November 2021 and used it to build 200 homes, including the firm’s first modular development. It made a second application in December to build a further 100 affordable homes.

Housing minister Lee Rowley 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.”

James Prestwich, director of policy and external affairs at Chartered Institute of Housing, said the extension of the scheme to include existing homes was "a sensible step".

He added: "The additional flexibility reflects the importance of finding a balance between existing homes and new supply at a time when financial capacity in the sector is stretched."