Bromford and NatWest agree £200m sustainable finance deal
Regional housing association Bromford has finalised a new sustainable finance deal with NatWest as it continues its focus on the development of new affordable, energy efficient homes. The 50,000 home social landlord has secured a £200 million sustainability linked loan with NatWest, one of the housing sector’s most prominent lenders, split into two £100 million tranches which mature in 10 and 11 years respectively. The loan will enable Bromford to build 1,300 new affordable homes, furthering its commitment to providing high-quality, affordable housing to communities across the West Midlands and West of England. Bromford’s Director of Treasury Imran Mubeen, said: “NatWest have been one of our key strategic funding partners for several years. The speed and focus with which we have closed this deal is a testimony to our relationship and underlines the ongoing importance of bank lending in our sector. We had considered a return to the capital markets this year, but we continue to refresh and optimise our new funding strategy in view of prevailing market conditions. This deal enables us to benefit from the prevailing arbitrage between the SONIA swap and gilt curve to generate significant interest savings over the life of the loan. Ultimately, this means we can invest even more in our communities and customers.” Bromford is one of the country’s leading developers of affordable housing and last year completed 1,191 new homes, including 308 for affordable rent and 551 for social rent. According to information from Inside Housing’s annual Biggest Builders survey, Bromford is ranked first in the country for the number of social rent homes completed during 2023-24 and has built more social rent homes than any other housing association in the country over the past four years1. Amanda Swann, Director of Development at Bromford said: “We exist to provide safe, affordable homes to people who are unable to access them through the market. With demand for affordable housing showing no signs of decreasing, we are committed to playing our part in tackling the housing crisis by continuing to build affordable homes. Our track record over the past few years demonstrates this commitment, especially around building homes for social rent which accounted for nearly half of all the homes we built last year. This loan from NatWest will allow us to continue our development programme to meet our ambition of building 11,000 new homes by 2032 with 65% at social and affordable rent tenures.” In line with Bromford’s commitment for all new funding to be sustainability linked, the loan with NatWest is the association’s seventh issue from its Sustainable Finance Framework which was first published and accredited in 2021. This deal is linked to Bromford-led targets focused on delivering new social rented homes and reducing Scope 1, 2 and 3 carbon emissions. Bromford will receive a discount on its interest payments if it meets the targets associated with the loan. Imran added: “Our shared vision with NatWest regarding sustainable finance created the first green loan in the sector in 2019 which focused on improving the energy efficiency of our homes and has helped to enable our decarbonisation journey with 89% of our homes now at EPC C or above. “This new deal captures our sustainability ambitions for a new era, as we continue to expand our new homes programme with a focus on social rented homes, and as we extend the focus of our carbon journey beyond EPC ratings to focus on our Scope 1, 2 and 3 carbon emissions. Importantly, the loan has the potential to generate over £1 million of interest savings if we successfully meet our sustainability targets which may challenge even the most sceptical of juries to reconsider the financial and broader benefits of sustainability linked loans.” Paul Eyre, Head of Residential and Housing Finance at NatWest Group said: “Our funding support to Bromford forms part of our ongoing commitment to supporting the social housing sector and its delivery of affordable, safe and energy efficient homes. “We announced an ambition earlier this year to provide £5bn of funding commitments to the social housing sector to December 2025.This additional funding brings our progress against this to £1.7bn. We are proud to help Bromford continue its great work of further investment in new affordable homes in the West Midlands and West of England.” Grant Vaughan, Treasury Adviser at Newbridge, said: “Having successfully accessed the private placement market in 2023, Bromford has now further diversified their funding base by securing term bank debt. This strategic move reflects Bromford’s pro-active commitment to securing competitively priced funding deals when they are in the market. The deal leverages the dislocation between the SONIA and gilt positions to deliver significant interest savings. “We at Newbridge are delighted to have supported Bromford’s treasury team in structuring, negotiating, and executing this latest sustainability-linked term loan. This collaboration not only underscores our commitment to fostering sustainable finance solutions but also highlights our ability to support our clients’ evolving financing needs in response to dynamic market conditions.” Over the past year Bromford has secured more than £650 million of sustainable finance to deliver the objectives set out in its Sustainable Finance Framework, from the delivery of new, affordable, more energy efficient homes to coaching more customers into employment and training and reducing the organisation’s gender pay gap. Legal advice was provided by Devonshires, Clarke Willmott and Trowers & Hamlins acting on behalf of Bromford and Addleshaw Goddard LLP acting on behalf of NatWest. Building, Design & Construction Magazine | The Choice of Industry Professionals
Caddick to take forward Horwich affordable homes development
Caddick Construction has been appointed to deliver Rivington Chase, working on behalf of development partners, Bolton at Home and Irwell Valley Homes, to build 116 new homes in Horwich. Work at the former Loco Works will see Caddick resume work to regenerate the former railway works, where construction was previously being delivered by Lane End Developments, which went into administration in April 2023. Construction work will see Caddick build 38 family homes across eight terraces of four and five-bedroom homes, and two four-storey developments totalling 78 apartments. All homes will be available for affordable rent and shared ownership. Rivington Chase forms part of a £262m regeneration scheme for which outline planning permission was granted in 2015 for 1,700 homes and additional heritage, educational, retail, leisure, health and well-being services. This includes the expansion of Chorley New Road School to serve the new homes. Caddick’s presence in Horwich also includes the construction of a new health and wellbeing hub on behalf of United Healthcare Developments, which will provide a range of medical services for the local community. Caddick’s appointment to Rivington Chase marks the second project to be delivered on behalf of Bolton at Home following the completion of a new extra care development in Little Lever, including 62 one and two-bedroom apartments and six bungalows for those aged over 55 years. Dave Saville, Regional Director at Caddick Construction North West, commented: “All projects, particularly those for new residential developments, require positive momentum for the benefit of all involved, from the community to the supply chain. We are honoured to have been appointed to take forward the development of Rivington Chase following the unfortunate setbacks to-date. Our focus is now on getting work on site underway so that our clients’ ambitions of delivering quality homes for Bolton are back on course as soon as possible.” Dominic Conway, Group Director of Development & Growth, Bolton at Home, added: “It is really good to get this development progressing back on site after a disappointing set back. The new affordable homes will be a real boost to the area as there is significant demand for affordable homes in Horwich and few become available for customers to express interest in. The development also forms part of the wider regeneration of the area and complements the new facilities, which have and are being delivered in Horwich.” Andrea Swanwick, Development Director at Irwell Valley Homes, said: “It is fantastic to be moving forward with this development again and working in partnership with Bolton at Home and Caddick Construction to deliver much-needed affordable homes in this part of Bolton. “The mix of tenures offers choice for local people, while the wider regeneration of the neighbourhood is already bringing benefits to the broader area. We’re excited to begin on site and looking forward to seeing its transformation into a vibrant and sustainable community.” Building, Design & Construction Magazine | The Choice of Industry Professionals
SO Resi Launches East End Zone 2 Shared Ownership Homes
Affordable housing provider SO Resi has recently launched its newest Shared Ownership scheme in the capital, with 37 homes at its SO Resi Canning Town development in Newham. Eager buyers are invited to find out more at two launch events at The Crowne Plaza Hotel Docklands from 10am – 4pm on 18th & 25th May, strictly by appointment only. The apartments at SO Resi Canning Town have all been stylishly designed with comfort in mind, offering low maintenance modern living. All homes come with Koncept kitchens and integrated Zanussi appliances, whilst the wider development offers landscaped communal areas and gardens. Offering an accessible pathway onto the property ladder, SO Resi Canning Town presents an opportunity for individuals and families to own a stake in vibrant London living. The development will introduce 37 Shared Ownership homes, with a range of one to three-bedroom apartments and is set to hit the property market off-plan this May, with a show home following shortly in June with prices from £96,875 for a 25% share (full market value £387,500). Shared Ownership offers lower deposit requirements and the flexibility to gradually increase ownership over time. Prospective buyers can secure a share of their desired property, ranging from 25% to 75% of its market value at SO Resi Canning Town, while benefitting from below-market rent on the remaining portion. As such, the launch of SO Resi’s new development marks a significant step towards addressing the need for affordable options in London, particularly in sought-after locations like Canning Town. Kevin Sims, Director of Sales at SO Resi, commented: “With Newham Council’s £3.7 billion regeneration project for Canning Town, the area is quickly becoming a sought-after area of London. The unpredictability of the housing market coupled with high pricing has been putting aspiring homeowners at a major disadvantage compared to previous generations of home buyers. At SO Resi, we aim to level the playing field by offering more opportunities for Shared Ownership solutions. “Our properties at our Canning Town development are the perfect example of this aim. Proposed plans from Newham Council means the new town centre is set to be home to a new community hub, cinema, shops, office spaces, as well as brand new Shared Ownership homes, underscoring the increased popularity of Shared Ownership as an option for prospective homeowners[1]. By choosing from our 37 Shared Ownership properties available at our SO Resi Canning Town development, prospective homeowners are set to gain a foothold in London’s property market alongside becoming a part of a vibrant and emerging community.[2]” Canning Town is an up-and-coming area of London with excellent transport links. Canning Town Station serves both the DLR and Jubilee Line. On the DLR, residents can access Tower Gateway to the east in 15 minutes and Gallions Reach to the east within 12 minutes. On the Jubilee Line, residents can commute to Canary Wharf within five minutes and London Bridge within 10 minutes. Canning Town is also in striking distance of London City Airport for locations further afield. Plus, regular bus services connect Canning Town to destinations like Trafalgar Square, Bethnal Green, Newham Hospital, Aldgate, Walthamstow Central and Romford Market. Canning Town also boasts a diverse range of restaurants, cafes and grocery options, excellent for adventurous foodies looking to find a new home. SO Resi Canning Town is expected to launch off-plan in May, with properties ready for occupancy by the end of 2024. Prospective buyers are invited to the launch events on May 18th & 25th from the Crowne Plaza Hotel Docklands from 10am-4pm strictly by appointment only. To register your interest for this event, please visit: https://soresi.co.uk/find-a-property/so-resi-canning-town [1] https://www.newham.gov.uk/regeneration-1/canning-town-custom-house [2] https://www.newham.gov.uk/regeneration-1/canning-town-custom-house Building, Design & Construction Magazine | The Choice of Industry Professionals
Pennyfarthing and VIVID close the deal on 106 homes in The New Forest
Pennyfarthing Homes has created a partnership with VIVID to construct 106 affordable homes within its development in Fordingbridge, Hampshire. Covering nearly seven acres of land, this deal signifies a step towards addressing housing needs in the local community, allowing VIVID to make an impact on affordable housing provision. This deal strengthens an ongoing relationship between Pennyfarthing Homes and VIVID, following the sale of 14 affordable homes in its Whitsbury Green development. Matt Dukes, Managing Director of Pennyfarthing Homes, comments: “This housing transaction is poised to start a new chapter of affordable, high-quality homes for Fordingbridge, promising lasting benefits for the town and its neighbouring areas. Working in collaboration with VIVID, we are committed to building residences that epitomise the high standards of any Pennyfarthing home, ensuring that the VIVID customers enjoy quality and comfort. We look forward to working with VIVID on this development and hope we can continue to work closely with this leading housing provider in Hampshire.” Construction of the affordable homes will commence in November this year preceded by groundworks starting in June. VIVID will take delivery of a mixed-tenure development which will include market housing, shared ownership and affordable rent options. The scheme will include a mix of one- and two-bedroom apartments, two-, three- and four-bedroom houses and two- and three-bedroom bungalows, appealing to a wide customer profile. Surrounded by open space, including an area of play and a natural recreational green space, residents will enjoy easy access to walking and cycling paths across the community connecting to the town centre and schools safely. Each property will come with allocated parking, with larger homes boasting a garage or carport, while every house or bungalow will include a private rear garden. Tristan Samuels, Group Development and New Business Director of VIVID, comments: “We are really pleased to be working in partnership with Pennyfarthing Homes on this project. We firmly believe that everyone deserves a safe and secure place to call home and this investment is a step towards addressing the shortage of affordable homes in the south. We are committed to making a positive impact on communities by providing accessible housing solutions that enhance lives and creating communities to thrive in”. This phase of new homes in Fordingbridge will also include six First Homes which will be available directly from Pennyfarthing Homes. The Government’s initiative supports home ownership for local first-time buyers and key workers living and working in the New Forest area. Completions are expected from Autumn 2025. This development sits alongside Pennyfarthing’s current scheme at Whitsbury Green. These interlinking phases in Fordingbridge ensure there is something for the whole community to enjoy, with expansive outside space on the doorstep, including a trail play area, comprising an obstacle course to promote fitness and outdoor activity for young people. This is combined with extensive accessible countryside alongside footpaths with beautiful vistas and attractive walkways for strolling to the village. With 140 miles of cycle tracks and footpaths close by residents will have no shortage of options for enjoying all the New Forest has to offer. For more details on the homes available from Pennyfarthing please visit https://www.pennyfarthinghomes.co.uk/developments/ or call 01425 541818. For more details on VIVID visit VIVID | Leading providers of affordable housing (vividhomes.co.uk) Building, Design & Construction Magazine | The Choice of Industry Professionals
Mayor and Mayoress of Coventry visit affordable homes site
The Mayor and Mayoress of Coventry have been to visit a site where nearly 200 affordable homes are being built. The development at Sphinx Drive by the Sphinx Sports and Social club is managed by Platform Housing Group who are the largest social landlord in the Midlands. Constructors Countryside Partnerships, part of Vistry group, have begun work to deliver 196 affordable homes over the next few years which will be available for both social rent and through shared ownership. Councillor Jaswant Singh Birdi and Krishna Birdi joined members of Platform’s development team alongside people from Countryside to look at plans for the land and see how building work was progressing. Platform’s Executive Director of Growth and Development Gerraint Oakley said, “This site is a great testament to our commitment to keep building homes and comes off the back of a successful period for our development team, achieving starts on over 1500 homes last year. Working closely with our partners remains crucial in accelerating the delivery of affordable housing and this site is a great example of how it can work to deliver homes for people who need them most.” Adam Sharpe, Managing Director for Countryside Partnerships said, “I am delighted to celebrate the start of work on these much-needed family homes that we are building on behalf of Platform Housing Group. Both organisations are committed to providing high-quality, affordable homes at Sphinx Drive. Together we will transform this site into a fantastic place to live and provide real opportunities for people living in the area to own a new, affordable home and become part of a vibrant new community.” The homes are set to be delivered over the next two years. Building, Design & Construction Magazine | The Choice of Industry Professionals
DLUHC gives local authorities new CPO powers to buy land cheaply – comment from Boyer
The Department for Levelling Up, Housing and Communities (DLUHC) announced yesterday that it has handed councils new powers to buy cheaper land in a bid to support the delivery of more social and affordable housing. The change came into force on 30 April and allows councils to buy land for development through compulsory purchase orders (CPOs) which removes ‘hope value’ costs. The intention is to make it cheaper and easier for local authorities to buy and transform land and to enables local authorities to build much-needed homes more quickly. Lawrence Turner, Director, Boyer considers whether the initiative will achieve this: “This may seem beneficial at first glance – giving local authorities the ability to overcome financial and viability barriers to delivering housing. “But my concern is that it will be ineffective and time-consuming, CPO is a lengthy and costly process, and many local authorities will lack the resources to do so. “The CPO process frequently involves negotiations with multiple landowners, legal challenges, and delays. Landowners may choose to challenge the decision through judicial review, further prolonging the process. As such, it is far from the quick and efficient means of unlocking land for new development which is needed. “Even if effective, CPOs are just one piece of the puzzle when it comes to delivering new homes. “The wider planning system in the UK is excruciatingly slow and bureaucratic, with Local Plans and planning applications often taking years to complete and the intrinsic problems that have led to this situation must also be addressed. “We need to see a more holistic approach to addressing the housing crisis: including reforming the planning system and providing support to councils, reviewing the Green Belt and delivering new homes in sustainable brown and greenfield locations will be necessary to truly make a meaningful impact on the availability of affordable housing in the UK.” Building, Design & Construction Magazine | The Choice of Industry Professionals