Section: Housing Finance

New Mechanism For Funding Upfront Costs

The Housing Finance Corporation (THFC) announced it has developed a new borrowing model, aimed at helping associations to pay for development costs but avoid long-term loans.

The Housing Corporation introduced changes in the way development grant was distributed in 2004. As a consequence, associations have to wait until onsite work starts before they can access allocated funds. This leaves the option of expensive long-term borrowing to raise working capital.

By using the collective borrowing power of a group of large developing landlords, the new funding mechanism will facilitate the securing of short-term economic loans to meet upfront development costs. The new system is to be launched by THFC for the start of the new financial year.

The new mechanism, named the commercial paper market, might also be of use to associations building without grant, which now only accounts for 50% of development funding.

Funding Update

Housing Monthly Diary

Enter your email address to receive email alerts when there are updates to our website. We will not share your email with others or use it for any other purpose.

Reporting on January 2006

Quick Links

Access to current journals

username: password:

Archive Issues Reporting Periods

Featured Sites

Financial Services
-->