54North Homes has secured a £20m loan under the Affordable Homes Guarantee Scheme (AHGS) to support its delivery of new affordable homes across Yorkshire.
Managed by ESR Group’s specialist investment manager Venn Partners on behalf of the UK Government, half of the loan will help 54North Homes deliver about 100 new homes, with the majority for social rent.
The remaining £10m will facilitate investment in existing properties, advancing improvement works and decarbonisation.
Managing Director Mark Pearson said: “We’re pleased to be benefiting from the Affordable Homes Guarantee Scheme, which will enable us to provide more good quality affordable housing across Yorkshire.
“We’ve an ambitious growth programme – and the loan will provide us with a welcome boost to develop a wide range of homes that will meet customer needs and strengthen local communities.”
54North Homes invested more than £26.5m in the delivery of new homes over the last 18 months.
The AHGS, which aims to provide lower-cost, fixed-rate debt to registered providers to increase affordable homes supply, will play a key role in 54North Homes’ delivery of around 150 homes over the next three years.
Loans under the scheme, which reopened in March last year with an additional £3bn, are funded by a bond issuance programme backed by a guarantee from the UK Government.
