Hightown secures £100m from Affordable Homes Guarantee Scheme

The aim is to provide lower-cost fixed-rate debt to boost the supply of affordable housing.

Social landlords have been able to use this scheme since 2024, when the Department for Levelling Up, Housing and Communities (now the Ministry of Housing, Communities and Local Government) provided £3bn of additional funding to the scheme, with a goal to help build 20,000 affordable homes.

Maxine Espley, chief executive of Hightown, said: “We are pleased to secure this cost-effective funding, which will allow us to continue to fulfil our strategic ambitions to deliver much-needed affordable homes in our key operating areas and to improve our existing homes to make them more energy efficient, comfortable and affordable for our customers.”

She added that “the structure of the facility across two tranches enables us to spread our refinancing risk effectively”.

The bonds sold for Hightown’s funding were issued under the AHGS’s 2036 and 2041 bond series, with interest rates of around 5.2% and 5.5% respectively. The association said this mid to long-term financing was tailored to its strategic plan.

Investment firm Venn manages the AHGS on behalf of the government. It worked with Hightown, Savills and Winckworth Sherwood to finalise the funding.

Oriane Auzanneau, deputy portfolio manager for AHGS and managing director at Venn, said: “We are delighted to close this transaction with Hightown and support them with the delivery of much-needed new affordable homes in their local areas as well as continuing to invest to improve their existing homes.”

Earlier this year, landlord Vivid also secured a £200m loan from the AHGS for the delivery of 1,300 new affordable homes. The loan was part of a 16-year bond series, with an interest rate of 5.4%.