Friday, 27 May 2016

£10 billion guarantees fund opens for business

The government is inviting expressions of interest in a £10 billion guarantee scheme to support house building, just one day after announcing the initiative.

Both the £10 billion guarantee and a £200 million pot to fund the construction of homes for private rent are open for expressions of interest from today.

Potential bids for a £300 million scheme to fund affordable housing are expected to be invited shortly.

Despite the call for interest, much of the detail of the schemes has yet to be announced.

The Communities and Local Government department said the £200 million fund would be an ‘equity loan scheme’ but details of how much would be available per property, or how the scheme would operate would not be available until later in the autumn.

A spokesperson said more detail on the £10 billion guarantee scheme would not be available until bidding opens later in the year.

Legislation has been published that would allow the government to guarantee the £10 billion of housing loans, and £40 billion of infrastructure loans announced in July. The government said it would push through the Infrastructure (Financial Assistance) Bill ‘to ensure it can take forward discussions with eligible commercial parties as soon as possible’.

The government yesterday announced a range of measures designed to increase house building.

As well as the funding pledges it promised to introduce legislation to allow section 106 schemes where the affordable housing commitments are holding up wider developments to be referred to the Planning Inspectorate, which will have the power to overrule local authority decisions.

Ministers also promised to speed up the release of public sector land for development, and extended the Firstbuy shared equity scheme for another two years by putting in £280 million.

In total the initiatives announced yesterday are expected to deliver up to 70,000 homes and 140,000 jobs.

Readers' comments (15)

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up



  • Guarantees programme to raise further £150m

    1 March 2016

    The Affordable Homes Guarantees Programme (AHGP) is poised to return to the bond market in the coming weeks with the latest tap of its low-cost bond.

  • Housing Heroes opens for entries

    8 January 2016

    The Housing Heroes Awards 2016 is now open for entries.

  • Disappointment over guarantees scheme axe

    1 December 2015

    Housing associations have expressed disappointment at the government’s decision to end a successful programme of guaranteed debt to fund sub-market rented housing.

  • DCLG to end guarantees scheme

    30 November 2015

    A government guaranteed debt programme, which has allowed housing associations to borrow at record low rates, will not be renewed by government. 

  • Government opens bids for £1bn loan fund

    20 October 2015

    The government is inviting bids from developers for loans under a £1bn scheme aimed to unlock ‘major housing schemes’ by funding infrastructure.

IH Subscription