ARA Venn is set to manage the government’s new £3 billion Affordable Homes Guarantee Scheme (AHGS), the housing minister Christopher Pincher has announced.
The investment firm has signed contracts to deliver the £3 billion scheme which aims to provide long-term loans to registered providers of affordable homes.
The announcement of ARA Venn’s appointment comes as the government also published the draft rules of the scheme with the final rules set to be published soon.
The housing minister Christopher Pincher MP said: “Ensuring everyone has the opportunity to access a secure, affordable home is central to the mission of this government and our £3 billion Affordable Homes Guarantee scheme will play a vital part in achieving this.
“ARA Venn’s wealth of investment expertise will prove invaluable to delivering another 17,000 much-needed new affordable homes to families across the country.”
The AHGS, first announced by the government in March 2019, aims to finance numerous types of affordable homes across England, including homes for social rent, affordable rent and shared ownership.
The funding will provide low-cost, flexible loans to registered providers to maximise the number of new-build affordable homes they can deliver as part of their development plans.
The scheme will be complimentary to the new £11.5 billion 2021-26 Affordable Homes Programme, which launched last month and is expected to provide up to 180,000 new homes across the country.
Richard Green, partner and portfolio manager of AHGS at ARA Venn, said: “We are delighted to have been appointed as the manager of the new Affordable Housing Guarantee Scheme. The scheme will offer registered providers very attractively priced long-term loans to support the vital housing that they provide.
“We look forward to establishing the scheme as a key partner to support the vision and ambition of the social housing industry. The ARA Group has a strong commitment to Environmental, Social, Governance (ESG), firmly believing in long term responsible investment and delivering a positive social impact from this scheme is a reflection of that.”
Applications for the AHGS will formally open in the next few weeks, at which time the final rules for the scheme will also be published. The first loans under the scheme will be delivered next year.