Landmark funding deal for affordable homes

Lawyers at Anthony Collins, known for their expertise in complex funding arrangements, have successfully facilitated the creation of Northern Ireland’s first affordable rent programme (ARP). This initiative, backed by a substantial £61.5 million loan from the Department for Communities, aims to collaborate with Maple and May, a part of the Choice Housing Group, to address the urgent need for affordable housing in the region. The ARP is a significant component of Northern Ireland’s Housing Supply Strategy, and its initial phase is designed to support the development of 300 new, high-quality homes available for affordable rent across the area.

Michael Nutman and Jon Coane, leading the team at Anthony Collins, engaged closely with executive teams and boards from Maple & May and Choice Housing while also collaborating with specialist property and construction lawyers in Northern Ireland. Jon Coane, head of funding at Anthony Collins, emphasized the challenges of this initiative, stating “This initiative required a new approach to funding and our specialists at Anthony Collins were able to cut through the complexities and structure a finance arrangement to support the delivery partners and their goals.”

He further highlighted the innovative nature of the programme, saying “Our client, Maple & May, is breaking new territory with this 25-year programme, which aims to provide high-quality, private rent properties at an affordable rent. An innovative approach to funding was required to dovetail with a complex development/land acquisition programme.” This new investment reflects a proactive response to the pressing need for affordable housing options for those in lower income brackets in Northern Ireland.

As a pilot initiative, the ARP's successful outcome may serve as a model for developing additional affordable rental homes throughout Northern Ireland. Notably, there are parallel initiatives in England focusing on long-term social and affordable housing solutions, highlighted by a new £2.5 billion low-interest loan scheme from the National Housing Bank aimed at bolstering social and affordable housing infrastructure. While specifics are still under wraps, there is speculation that these loan schemes could extend up to 25 years.

Michael Nutman echoed Coane's sentiments, stating “These are exciting times for housing providers in Northern Ireland and in England, due to the new funding options available and the willingness of policymakers, providers and developers to collaborate.” This trend signifies an increased emphasis on delivering more affordable homes, including social rent options for long-term stability, underlining the need for innovative funding models moving forward.