‘A real opportunity’ and not just for London: Tees Valley Housing Partnership chair says £2.5bn low-cost loans will help make marginal sites more viable

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Funding model proposed by Housing Today and G15 could help boost regeneration schemes, says Matt Forrest

The chair of the new Tees Valley Housing Partnership has said the government’s £2.5bn low-interest loans scheme will help “unlock a lot more homes” in the region and stressed the model is more than just a solution for London.

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Matt Forrest, chief executive of Thirteen Group, told Housing Today the new funding will help make marginal sites viable and attract investment for regeneration projects.

The £2.5bn low-interest model was first recommended in Housing Today and G15’s inaugural State of the Capital report published last year. Under the model, providers access repayable loans at a nominal interest rate of just 0.1%, reducing the amount of commercial borrowing needed upfront to develop. It has been seen as a solution to low-interest cover, which is a problem most acute in London. A total of 60% of the fund is ring-fenced for the capital as a result.

However, Forrest said: “I know there’s a big focus on London but there’s a chunk to be spent outside, and we’re really excited about what that could mean for us.”

Forrest said the low-cost loans could help get sites that are difficult to develop get “over the line” particularly when used alongside other funding.

“If we have some Homes England cash, some private investment -and it might be a mixed use site with a bit of Housing Delivery Fund to get the brownfield side moving - and some loan capital as well….I think that can unlock a lot more than we would have had previously,” he said.

Forrest said the loans could help regenerate brownfield sites for projects similar to Thirteen Group’s 145-home Union Village scheme. This saw it bring a long-derelict industrial site in Middlesborough back into use for housing.

He added the loans could also help attract investment.

“The private investment, or private-partnership piece becomes more easy because you’ve got this low interest capital in there as well”, he said. “I think it’s a real opportunity.”

The TVHP launched in December consisting of 14 members who are housing associations, councils or combined authorities. The partnership aims to pool members’ knowledge and expertise and more easily attract funding and investment.

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