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NHF calls on government to end Brexit delay over EIB deals

Housing associations have called on the government to act quickly to unlock cash for housebuilding that is being held up by Brexit negotiations.

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Picture: Getty
Picture: Getty
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NHF calls on government to end delay over EIB deals #ukhousing

The National Housing Federation urged ministers to ensure finance from the European Investment Bank (EIB) could get through to members.

The EIB invested €6.9bn (£6.1bn) in the UK economy last year, but reports have suggested the flow has dried up since the start of the formal process of this country leaving the EU.

John Bruton, finance executive director of Stonewater, last week told the BBC that more than 300 planned homes may not get built due to delays getting hold of cash from the EIB.

Welsh housing associations are seeking alternatives to EIB funding after talks over a potential £420m borrowing package stalled.


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Nick Yandle, policy leader at the National Housing Federation, said today: “The EIB has been an important source of long-term and cost-effective finance for the housing association sector, supporting the development of thousands of affordable and energy-efficient homes.

“The current uncertainty regarding our future relationship with the EU has unfortunately delayed the completion of some EIB deals with housing associations – we are eager for [the UK] government to take the steps necessary to allow these deals to be finalised.”

Stonewater applied back in 2015 for £100m from the Luxembourg-based bank. Approval in principle was given in October that year but the final confirmation has still not been given two years on.

“The bank has been waiting for assurances from the UK government before the application can be progressed,” Mr Bruton told the BBC. “If this doesn’t happen, we are happy that we can raise funding elsewhere but there will be a reduction in the size of the programme.

 

“It could be as many as a third of those 1,000 homes is my rough estimate.”

A spokesperson for Stonewater – which owns more than 30,000 homes across England – said cuts to its building programme could come anywhere in the country.

“From our conversations with our relationship manager at the EIB, we understand that a final decision on whether to approve our loan has been delayed due to the uncertainty about the UK government’s position in relation to underwriting such loans,” said the spokesperson.

“Stonewater has been raising this issue with political stakeholders and in the media, including HM Treasury.”

The Treasury and the EIB have been contacted for comment.

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