Housing minister welcomes funding boost

This new investment, secured through an agreement with the European Investment Bank (EIB), will help deliver up to 4,300 new affordable homes to rent.

The funding will form part of the £3.5bn Affordable Housing Guarantees programme, which enables housing associations to use a government guarantee to secure private investment at more competitive rates than they would otherwise.

Hopkins said: “Today’s deal with the European Investment Bank is a vote of confidence in our ongoing efforts to restore confidence to our housing market and get Britain building.

“This £500m investment will help deliver up to 4,300 new affordable homes across the country, on top of the 170,000 affordable homes we’ve already delivered since 2010.”

Jonathan Taylor, European Investment Bank vice president responsible for the UK said: “The initiative launched today will significantly enhance construction of affordable housing by housing associations across the country.

“The European Investment Bank recognises the importance of long-term investment in the housing sector and is pleased to work with the UK government and experienced housing partners through this new, large scale programme.

“Following the £500m EIB loan formally agreed today, we look forward to further engagement with the UK housing sector in the coming months.”

Richard Blakeway, the deputy mayor for housing, land and property, added: “This new funding will help many hard working people who need, and rightly deserve, decent low cost homes.

“Tackling the demand for housing is a key priority and we all need to work closely together to boost affordable housing supply in London and across the UK.”