Affordable housing

The Government has stated that 3 million new homes are needed by 2020. Affordable housing continues to be a key priority in proposals to increase housing supply and on 23 July 2007 the Government announced a target of 70,000 new affordable homes per year by 2010/11.

At Nationwide we are looking to play our part in this challenging agenda. In 2006/07 we delivered record levels of funding amounting to nearly £1.5 billion to housing associations and other institutions who provide affordable housing. Grove Village in Manchester, a Private Finance Initiative project, demonstrates how this translates into a real difference in local communities.

  

Grove Village is a 1,100 unit Local Authority housing estate in Manchester undergoing transformational regeneration. Three years ago it was characterised by low demand, high crime and a poor layout. Now it's a place where people want to live, with a three year waiting list. 122 new homes have been sold and are already occupied. There's a much stronger community spirit, significantly reduced crime and increased job opportunities.

The Village won 'Best Regeneration Scheme' in the 2006 Manchester Evening News property awards and is recognised as a great example of how the community is being put at the heart of regeneration.

Nationwide provides a £38 million facility as sole funder. The Village is a partnership between Nationwide (the funder), Harvest Housing Group and MJ Gleeson Group, with all three as equity investors.

Looking ahead, we believe the following will drive the activities of the housing association sector:

• bringing regulation up to date without weakening governance and financial viability, which are essential in order for lenders and investors to retain full confidence in the sector
• the need for both urban and rural regeneration and the development of truly mixed communities
• the need for energy efficient housing design and construction to help reduce carbon emissions
• the ever increasing number of middle income earners who cannot afford open market purchase and want a form of low cost home ownership
• the need to provide higher quality services to tenants more efficiently

Nationwide is exploring new funding solutions to support the work of existing and new customers in the affordable housing sector.

Nationwide is the biggest lender to the affordable housing sector with commitments of £8.5 billion.

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