The mechanisms for funding affordable housing are evolving and widening

Government policies including the ten-year grant programme, the long-term rent settlement, and the establishment of the National Housing Bank have increased the flow of private capital into the sector.  A report published by law firm Winckworth Sherwood on 23rd July identified four key themes in this area:

• The establishment of the National Housing Bank, whose role is to de-risk schemes, unlock stalled sites, and crowd in institutional investment, should be a game changer.
• Delivery is increasingly being provided through a range of partnerships, involving a combination of housing associations, institutional investors, for-profit providers and local authorities.
• Investors increasingly want evidence of stock condition, resident outcomes, sustainability performance and data quality before committing capital. 
• The trading of stock portfolios has moved from being just about rationalising the footprint to strategic capital transactions to strengthen balance sheets and to fund energy efficiency and building safety programmes.