Modular house builder agrees deal with new social housing funder to build homes for councils

Under the MOU, Funding for Housing, supported by sharia-compliant Sukuk issuance platform Al Waseelah, will issue notes to raise an initial fund of £500m but it hopes to increase it to £1bn within 12 months via two further tranches, subject to investor demand.

According to its website, Al Waseelah is the first independent Islamic securitisation and issuance platform. Sukuk is effectively a type of funding through bonds which complies with Islamic religious law, or sharia.

Funding for Housing said that 80% of the bond proceeds would go to constructing new social housing stock. It has also pledged to design homes that will meet the projected Future Homes Standard and be virtually energy self-sufficient at a time of soaring energy costs.

“Fixing the social housing crisis requires immediate action from experts who know how to deliver the homes people need,” said Scott Levy, founder of Al Waseelah. “We are very encouraged by our MOU and believe that with the incoming funds, we will be able to provide energy self-sufficient homes at a time when the general public most need it.”

Majid Dawood, chief executive of London-based sharia compliance consultancy Yasaar, which supported the issuer, said: “Several financial groups have sought to provide alternative funding to fix the issue of social housing in the UK, yet none have managed to combine the capital provision with a supplier of rapidly deployed [offsite manufactured] homes designed specifically for the social sector.”