Policy recommended by Housing Today and G15 to be reviewed as Burnham puts renewed focus on council housing

Part of the government’s £2.5bn low-interest loan scheme may be re-targeted towards local authorities, the chief executive of Homes England has hinted.

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Amy Rees (bottom right on screen) talking to Kate Henderson this afternoon

Amy Rees, speaking at the Housing Community Summit in Liverpool today, said “Low-interest loans, as the policy was originally envisaged, were not targeted at councils…[they were] targeted at RPs

“Some of that policy may be looked at again in light of the new government, etc, and where we want to target it”.

Rees, responding via video link to a question from National Housing Federation chief executive Kate Henderson, said however Homes England is still expecting the scheme to launch in the Autumn.

The £2.5bn low interest loan scheme, proposed by Housing Today and the G15 in the annual State of the Capital 2025 report, offers registered providers a loan with a nominal interest rate of 0.1%. This reduces the amount of private borrowing the housing association needs to take on to fund development and has been seen as a solution to short-term balance sheet constraints, particularly in London where interest cover is tight.

Matthew Pennycook, housing minister, in January ruled out allowing councils, which borrow through the Treasury’s Public Works Loans Board, to use the model due to “fiscal considerations”.

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