SLH helps shape innovative affordable housing fund
A new £6 million loan fund could help to build more affordable homes across South Lakeland.
The money would enable housing associations to finance new developments and help South Lakeland District Council (SLDC) achieve its strategic targets for providing homes to meet local need.
The creation of a loan fund, which is to be considered at next weeks Cabinet, follows a council-commissioned study which has identified the need for more creative approaches to delivering affordable housing. SLH had been contributing to the study which aimed to identify more creative approaches to delivering affordable housing. The new funding will allow Housing Associations to access cheaper borrowing and help the District Council meet its 1,000 new affordable homes target by 2025.
Councillor Jonathan Brook, Portfolio Holder for Housing and Innovation, said: The loan facility would allow housing associations to access low interest rate finance from the council, removing an obstacle which may be preventing them from developing more affordable housing in the area. He added there is no doubt that there is a continuing high need for affordable housing in this district. Around 60% of affordable housing is delivered by housing associations, most of which require some financial help or support”.
Cath Purdy, Chief Executive of South Lakes Housing said “We welcome the innovation being shown by SLDC which will allow Housing Associations to access cheaper borrowing in return for building more affordable homes to meet the needs of local people. Together with our own significant funds, we will be able to make an even greater contribution to boosting the supply of new homes by as much as 300 over the next few years”.
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