Brussels, 26/11/2008 (Agence Europe) - The European Investment Bank (EIB) is lending GBP 100 million (€122 million) to The Housing Finance Corporation (THFC) for the rehabilitation and construction of social housing around the UK. EIB funds will be on-lent by the THFC to registered social landlords (RSLs) to undertake social housing improvement projects as part of well-defined urban regeneration schemes.
The EIB-funded project will improve living conditions to benefit those UK residents who are most in need of affordable housing. Urban regeneration and social cohesion are priority objectives of the EIB and the Bank lends its full support to the UK government's goal to provide more, higher quality, and greener houses by 2020.
In 2008, two new bodies were created to regulate the recently modified legal environment for social housing. The Tenant Services Authority (TSA) and the Homes and Communities Agency (HCA) are respectively in charge of the regulation of the social housing sector, which includes landlord accreditation and the enforcement of housing standards, as well as investment in the sector. Both organisations were represented alongside THFC and EIB at the loan signature ceremony in London.
Shortages in social housing alongside population growth and changing demographics have resulted in high demand for rented social housing in the UK. The EIB's loan will be used to increase the number of available housing units, enhance energy efficiency, improve health conditions for tenants and alleviate unemployment-related problems. Also, as the Bank points out in a press release, the loan is timely given the current difficulty faced by many potential borrowers to access finance. Around 50 schemes have already been identified to benefit from this loan and more will follow. (O.L./transl.jl)