Affordable Homes boost for Yorkshire provider

A Yorkshire-based housing provider has secured a £20 million loan under the Affordable Homes Guarantee Scheme (AHGS) to support the delivery of affordable homes and upgrades to existing properties.

54North Homes, an independent subsidiary of the Karbon Homes Group, will use £10 million of the funding to build around 100 new homes, with most designated for social rent. 

The remaining half will fund improvements to its current housing stock, including decarbonisation efforts.

Mark Pearson, managing director of 54North Homes, which is based in Huntington, on the outskirts of York, said: “We’re pleased to be benefiting from the AHGS, 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.”

Managed by Venn Partners on behalf of the Government, the AHGS, backed by a £3 billion bond programme, offers financing to social housing providers. 

Oriane Auzanneau, deputy portfolio manager for the AHGS and managing director at Venn Partners, added: “We’re delighted to welcome 54North Homes to the Affordable Homes Guarantee Scheme as part of this transaction.

“Given the increasing gilt rates over the last two months, this outcome demonstrates the continued attractiveness of funding under the scheme, even at longer tenors, to support the sector’s affordable development pipelines and investment programmes.”

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