Manchester landlord borrows £83.5m through government-backed scheme

WCHG is expected to use half of its loan to help it develop around 200 social rent homes and about 30 intermediate rent and shared ownership homes in Wythenshawe. 

The other half of the loan will be used on improvements, including decarbonisation work. 

In its last full year to the end of March 2024, WCHG completed 141 homes. Its annual report said it was aiming to build around 200 homes a year over the next five years. 

Under the AHGS, Venn issues the bonds through its funding vehicle, Saltaire Housing, with the money raised then on-lent to registered providers.

As at the end of February 2024, £1bn of loans had been arranged under the AHGS for 12 housing associations aimed at helping them deliver 6,290 new homes.

Oriane Auzanneau, deputy portfolio manager for the AHGS and managing director at Venn, said there had been “considerable volatility” in gilt rates over the past few weeks.

But she added: “The scheme’s ability to continue to provide borrowers with ready access to the capital markets at all-in rates comfortably below five per cent demonstrates the support and value which the scheme brings to the social housing sector.” 

The AHGS is overseen by Saltaire Housing, which was set up as as a wholly-owned subsidiary of Venn, which was then known as ARA Venn. 

Saltaire’s board includes former Peabody finance chief Susan Hickey and one-time MP Mark Prisk, who served in David Cameron’s government, including a spell as housing minister.