New housing bond is great news for development of affordable housing in Wales.
The Welsh Government today launched an innovative new financing scheme which will support the development of over 1000 new affordable homes in Wales. The Welsh Housing Finance Grant Scheme will allow housing associations to use rental income from the new housing stock to service the debt.
Twenty Housing Associations are taking part in the scheme, with coverage across all 22 local authority areas in Wales. Construction work on the first projects will commence in 2013.
As part of the scheme, M&G Investments are providing the main new source of finance for Wales’s Registered Social Landlords, in light of the lack of long term funding currently available from banks.
Dave Palmer is the Co-operative Housing Project Manager at the Wales Co-operative Centre, “We welcome this long term innovative funding for Affordable Housing where the Welsh Government guarantee the interest payments for 30 years. This will help our Housing Association partners and may enable other development finance to be used for Co-operative Housing where the need exists.
We hope that this will pave the way for a co-operative housing bond for England and Wales in the next few years”.