New homes funding gets the go-ahead

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A first step has been taken towards funding new affordable housing in Sheffield.

Up to 138 homes will be built across the city as part of a multi-million pound deal.

Housing associations are to receive a share of £208 million in loans to build 4,800 new affordable homes nationwide.

The scheme works by the Government unlocking cheaper debt for Affordable Housing Finance so it can lend the money to housing organisations.

Yesterday the firm issued its first bond to raise funding – dubbed the lowest-priced bond in the sector’s history.

It was worth £208m.

Funding from an existing European Investment Bank loan will also go into the project.

Housing minister Kris Hopkins said: “This deal means thousands of new affordable homes will be built in communities for families in real need.

“And, thanks to our hard-won and strong economic record, these housing associations have access to funding for house-building at some of the lowest rates the sector has ever seen.”

In Sheffield, housing association Great Places is to build the homes.