Social housing and the construction industry in Northern Ireland is set to benefit from a £31m boost as a result of a funding partnership between the Clanmil Housing Group and The Housing Finance Corporation (THFC).
A £17m loan from THFC will help Clanmil Housing access some £14m in statutory grant funding from the Department for Social Development, stretching public money with private finance to facilitate the construction of 300 much needed new social homes across Northern Ireland over the next eighteen months.
The funding has been provided by THFC through an aggregated bond issue of £55m funding 10 social housing borrowers, of which Clanmil is the largest participant and the only one from Northern Ireland. At 4.31% for 30 years, this is one of the most competitive rates of interest for long-term borrowing ever achieved for UK Housing Associations.
Northern Ireland’s struggling construction industry will also benefit, as the construction of these new homes will secure almost 300 on-site jobs as well as supporting many more associated jobs throughout the supply chain.
Jonathan Boggs, Group Finance Director at Clanmil, said;
“This funding is very cost effective and really good news in a very tough lending market. Faced with growing demand for social housing and increasing constraints on statutory funding, our challenge is to find new funding sources that will support continued investment in social housing and make available public money go further.
“Last year Clanmil delivered the largest portion of Northern Ireland’s social housing new build programme, 355 new homes, and this funding leaves us well placed to continue to play a major role in the provision of good affordable homes for people in housing need.
“The Northern Ireland economy will also benefit from much needed jobs for the local construction industry.”
Mr Boggs added;
“A good home is so much more than just a roof over your head. It is fundamental for our health and well-being, providing better quality of life and increased opportunities for our tenants.”
Piers Williamson, THFC’s Chief Executive, said; “As a not-for-profit finance company, our job is to help our customers build more houses. We particularly value working with Clanmil as a highly professional housing association and are delighted to have delivered them such a cost-effective funding solution.”
John Armstrong, Managing Director of the Construction Employers Federation welcomed the funding and the new construction jobs it will create. He said;
“This is great news. Not only will it help in the provision of much needed social housing but it will also provide a real boost to the local construction industry. It is too early to say with certainty how many jobs will be created. However the unique multiplier effect of construction activity will provide significant benefits to the local economy.”
Clanmil Housing is continually seeking development opportunities that will help increase the social housing provision in areas of housing need throughout Northern Ireland and is always pleased to hear from landowners who have sites with development potential.
For further information please contact Christine Ashfield at Clanmil Housing on 028 9087 6000 or 07595118122.
Notes to Editors:
- There were 41,356 applicants on Northern Ireland’s social housing waiting list at 31 March 2013, of which 22,414 are deemed to be in housing stress.
- The new build programme for social housing in Northern Ireland is financed by a mix of Department for Social Development funding and private finance sourced by housing associations.
- Clanmil Housing is one of Northern Ireland’s leading housing associations and currently owns and manages almost 3,500 homes throughout Northern Ireland including family homes, homes for single people, independent living schemes for older people, housing with care for the frail older people and supported housing for older people with dementia. Clanmil aims to provide high quality homes at the lowest possible economic rent for everyone in housing need.
- Source of construction jobs figure is the Jobs Creation Model commissioned by the Strategic Investment Board in 2010. The model is based on data collected in 2010. Some factors may have changed which would have an impact on the results of the model, for example, changes in wage rates and/or a consumer trend towards saving rather than spending.