Yorkshire Building Society has announced an increased allocation of funding for social housing and is now seeking to write up to £200 million of new lending per year for the next five years.
Following a strategic review of the market and its existing social housing portfolio, the Yorkshire has decided to increase its lending to the housing association sector.
This follows the Society’s success in winning several mandates in the first half of 2012 - including a £12m deal in Newcastle Upon Tyne, where funding from Yorkshire Building Society helped to secure the continuing upgrade of 1,800 existing properties on the listed Byker estate, including environmental improvements and renewal of the district heating system – and an innovative structure in Wales involving a £14.5m ‘Lending For Leasing’ Facility for four new clients.
Commenting on the activity, John Inglesfield, Head of Social Housing at Yorkshire Building Society, said: “We continue to see a stable and well managed sector notwithstanding recent changes to the grant and benefit systems.
“As a mutual with the objective of helping our customers into homes, we feel comfortable with working with not for profit housing organisations which also aim to provide the housing people want and need.
“This increased allocation will provide the sector with access to lines of term credit to complement other sources of finance. We hope to work with new customers large and small in lot sizes from £5m to £50m.”