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Publish Date : 27-Jul-2012

An innovative funding deal worth Ł250m is set to deliver 1,700 new affordable homes across the Midlands.

Longhurst Group, together with their appointed financial advisors Savills, announces that it has raised the funding through the bonds market. The group already owns and manages more than 17,800 homes in the Midlands.

The move is the result of Longhurst Group’s determination to ease the housing crisis in the Midlands, where there are around 650,000 people on waiting lists for affordable homes.* Private sector rents in parts of the region are also expected to rise more steeply than anywhere else in the country.

The homes will be built over the next four years. Around 1,300 of the homes will be provided for rent while the remainder will be offered for low-cost home ownership (or part-buy, part-rent) to help people wanting to get a foot on the property ladder.

Bob Walder, group chief executive of Longhurst Group, said: “As a key housing provider in the region, we understand the growing demand for affordable homes in towns and villages across the Midlands. As the impact of the economic situation and welfare reform starts to bite, we expect to see an even bigger demand for our affordable homes.

“We are committed to doing everything we can to help ease today’s housing and economic challenges and this programme will go beyond the building of new homes. The investment will also create jobs, provide new infrastructure and develop thriving communities where people can put down roots.

“We are particularly grateful for the support of our advisors and bankers who have worked alongside us to not only raise this funding but also create new facilities to underpin our plans for the future.”

Rob Griffiths, group executive director of financial services, added: “As public funding for affordable housing has reduced, housing providers need to look to alternative funding streams. Approaching the bonds market was the best way of raising the capital we needed to restructure our existing funding and, working closely with our banking partners, to create the facilities to make a real dent in the region’s housing shortfall.

“The money is going to make a tremendous difference to so many people from all walks of life and we can’t wait to get started on our first schemes. We look forward to working with our local authority partners and developers to get work underway and welcome residents to their new homes.”

Mike Roche, Director in Savills Housing Consultancy team says: “We are absolutely delighted with the positive response from investors to the Longhurst bond. This clearly demonstrates the confidence they have placed in the Group, built on its track record of delivering high-quality homes and the excellent reputation it has as a well managed Group with a strong board and management team.”

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