Housing minister announces Affordable Housing Guarantee scheme
After their initial announcement on 6 September 2012, the government have now officially opened Housing Guarantees for business.
The licence to provide the Affordable Housing Guarantees Scheme has been granted to Affordable Housing Finance plc (AHF), a subsidiary of The Housing Finance Corporation Limited.
The Housing Minister Mark Prisk said in a written statement to Parliament that, subject to due diligence, the first applications would be approved this summer.
The Housing Guarantees Schemes are part of a package of measures designed to expand the provision of rented housing and boost economic growth.
There are two separate guarantee schemes; one to support the delivery of large scale professionally managed purpose built accommodation for private rent and a second to support delivery of additional affordable homes.
Up to £10 billion of housing providers’ debt will be guaranteed by the government through the schemes.
Mr Prisk said that some potential borrowers are already discussing applications with officials and others are invited to do the same.
A formal application process will open shortly.