Land for Housing Loan Scheme 2015/16
In July, the Welsh Government launched its £12m Land for Housing Scheme following the pilot of a similar scheme in 2014/15. The scheme provides loan funding to Registered Social Landlords (RSLs) to purchase land for housing development to increase the supply of affordable and market housing.
This year’s scheme is a more simplified approach with the core purpose still being to support the delivery of housing. Consultation with the affordable housing sector helped re-shape the scheme to provide an alternative funding mechanism for securing land and housing. A maximum loan cap of £3m per loan applies with a maximum loan term of 5 years (with the option to extend if required subject to agreement).
The scheme offers preferential borrowing with low or zero interest rates (RSLs can potentially attract zero interest for lending for affordable housing) and flexibility with securitisation (loans will be secured on the land asset rather than existing property assets). All applications will require the support of the relevant Local Authority and need to provide evidence to demonstrate how they support strategic housing priorities.
All RSLs have received an invitation to apply for funding and the deadline for applications is September 11th 2015. Please take this opportunity to support this worthwhile scheme and to help accelerate housing supply across Wales.
For any further information or any queries please contact Kirsty Greening on 0300 062 8637 or [email protected].