HSBC enters social housing sector with £75m loan

L&Q will use the funds to support its £2 billion house building programme in and around London. It has 12,000 homes in its pipeline.

Inside Housing reported in February that the deal between the 70,000-home landlord and the bank was close to being secured.

The bank is understood to be in talks with at least one more major London landlord, having approached various members of the G15 group of the biggest housing associations in the capital.

L&Q said the deal was ‘the foundation of a long-term relationship’.

Andy Armstrong, head of corporate banking real estate for Europe at HSBC, said: ‘L&Q plays an important role in social housing, and is a business which is going from strength to strength.

‘This £75 million debt facility we have agreed will enable L&Q to build more homes in and around London, giving families in need of accommodation a viable option. L&Q is a strong business with a very good track record.’

Martin Watts, head of treasury at L&Q, said: ‘HSBC’s choice to re-engage in the housing association sector with L&Q recognises and reflects our status as a leading social enterprise.

‘We believe that the strength, depth and cultural fit of HSBC will allow them to play a pivotal role in our future vision and we see this deal as the foundation of a long-term relationship.’

HSBC has arranged bonds for housing associations and provided a relatively small number of loans to the sector in the past, sector banking specialists said.