Although not strictly relating to technology in housing, it is nevertheless interesting to report that Coastline Housing has borrowed £23 million via the Affordable Homes Guarantees Programme at a cheaper rate than the UK government pays for its debt.
Coastline borrowed the money under a £500m funding programme agreed with the European Investment Bank, via Affordable Housing Finance which administers the £3.5 billion government guarantee programme for affordable housing.
The new funds will be used to strengthen Coastline’s programme to develop more new homes for people in housing need in Cornwall. The housing provider has committed to delivering up to 660 homes over the next five years.
Coastline will draw down the funds at 0.15 per cent below gilts at a fixed cost of just 2.23 per cent. The loan is for 30 years and represents some of the cheapest ever debt secured in the sector. It is thought that this is the first time that housing providers have borrowed at lower rates than the UK government.
Zoe Field, head of investment, Coastline Housing, said, “This new arrangement has saved us £850,000 per year compared with our business plan expectations.”