North West landlord loaned £83.5m through Affordable Homes Guarantee Scheme

The scheme, which offers loans of up to 30 years to registered providers to build affordable housing, reopened in March with an additional £3bn. 

The aim of the fund is to provide lower-cost fixed-rate debt to registered providers to boost affordable homes supply. 

From March, for the first time housing associations could also use the scheme to upgrade their existing homes. 

WCHG’s loan was funded from the issuance of £83.5m further bonds under the scheme’s existing December 2033 bond. 

Work on the landlord’s existing homes will also include decarbonisation.

Oriane Auzanneau, deputy portfolio manager for AHGS and managing director at Venn, said: “We are delighted to have worked with the Wythenshawe team on this transaction which provides them with lower-cost funding to continue and invest in their local communities and deliver much-needed new affordable homes, the majority of which will be for social rent, as well as improve existing homes. 

“There has been considerable volatility in gilt rates over the past few weeks, and the scheme’s ability to continue to provide borrowers with ready access to the capital markets at all-in rates comfortably below 5% demonstrates the support and value which the scheme brings to the social housing sector.” 

Simon Morris, executive director of finance at WCHG, said: “We are pleased to successfully conclude this £83.5m of funding from the Affordable Homes Guarantee Scheme. 

“Venn were very good to work with, not least in explaining and keeping us fully informed about the process, which was new to us, and ultimately helping deliver an excellent outcome for WCHG.”