Hightown Housing Association has secured a £60million loan from Lloyds Bank Commercial Banking which will help to fund its development pipeline of over 2,000 new affordable homes in the next five years.
Hightown Housing Association, which owns 6,300 affordable homes across Hertfordshire, Bedfordshire and Buckinghamshire, plans to expand its affordable housing stock by around a third by 2023.
The funding from Lloyds Bank will allow the association to build 400-500 homes a year over the next five years.
David Bogle, Chief Executive at Hightown, said: “The latest loan from Lloyds Bank marks our largest funding deal to date and will help deliver our ambitious programme of 400-500 new homes every year for the next five years.”
“The need and demand for affordable housing is very high in our area of operations in the Home Counties and we are committed to working in partnership with local authorities to help people who cannot afford to buy or rent at market rates.
“Through our development programme, our social lettings agency and our supported housing projects we will house over 250 homeless households each year. Our relationship with Lloyds Bank goes back over 30 years and the team at Lloyds fully understood our business model.”
“Most of our homes sit within the London commuter belt where the average house price is between £400,000 - £500,000. This funding will help us continue to provide new high-quality, affordable housing in these sought-after areas.”
Lloyds Bank provided a tailored finance package by utilising its £500million Social Housing fund which was announced earlier this year to help fund the growth of housing organisations.
Claire Simpson, relationship director at Lloyds Bank Commercial Banking, said: “Social housing organisations play a vital role in any community, particularly those like Hightown Housing Association, which operate in costly areas.
“We’re committed to helping Britain prosper, which is why we’ve pledged to provide £750million of new funding to associations across the sector this year."
Hightown Housing Association has a turnover of £82million and employs over 1,000 members of staff. Most staff are engaged in providing support to vulnerable and disabled people in Hightown’s services for homeless people, people with learning disabilities and people with mental health problems.