The Housing Finance Corporation, the UK’s leading affordable housing aggregator, has agreed a new £100million facility with Newlon Housing Trust, the first to be completed under the Corporation’s new multi-vehicle funding structure.
By broadening access to investor funding, the structure helps housing associations secure cost-effective finance to deliver affordable homes.
The Newlon Group consists of Newlon Housing Trust, the parent organisation, alongside four subsidiaries. Together, the Group delivers a range of housing and community services and is recognised as one of London’s leading developers of affordable homes.
Newlon currently owns and manages over 8,500 affordable homes across north and east London, with a substantial pipeline of new homes in development. This latest funding agreement, arranged through the Social Housing Finance 1 plc vehicle (SHF1), will underpin the Group’s ongoing development programme, including a major regeneration project in Islington and mixed-tenure schemes in Waltham Forest.
Announced in April, The Housing Finance Corporation’s new multi-vehicle funding structure broadens access to capital markets for housing associations across the UK, which aims to provide a more flexible way to raise finance, enabling a wider range of organisations to secure funding that meets their needs and supports future investment in affordable housing, while creating new opportunities for institutional investors to participate.
Surjit Dhande, group finance and resources director of Newlon, said: “The funding agreement is an important milestone for Newlon and supports our ongoing commitment to delivering high-quality affordable housing and investing in thriving communities across London. Working with The Housing Finance Corporation allows us to strengthen our financial capacity while continuing to deliver homes that are genuinely affordable, sustainable and community-focused.”
Priya Nair, chief executive of The Housing Finance Corporation, said: “Access to flexible finance remains critically important if housing associations are to continue investing in sustainable communities. Our focus is on delivering finance with impact and our partnership with Newlon demonstrates the value of our new multi-vehicle funding structure, giving housing associations greater flexibility to access investment and deliver affordable homes and regeneration projects.”
