Cardiff-based housing association secures £25m loan to deliver 300 affordable homes

Hafod Housing has secured a £25m loan facility to support the construction of 300 new affordable homes over the next five years.

The Cardiff-based housing association has entered a new partnership with Principality Commercial, the business division of Principality Building Society, Wales’ largest building society.

Over the next three years, the partnership will progress, with funding directed towards building “much-needed affordable homes”.

Hafod works across seven local authority areas in Wales and has a turnover of over £60m.

Hafod has recently redeveloped a former office block, Haydock House, into 16 affordable homes.

It has also redeveloped Cardiff’s Lansdowne Hospital site, in a partnership with Lovell, Cardiff Council and the Welsh government, which will deliver 106 energy-efficient homes once completed next year.

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The Welsh Government set a target of delivering 20,000 new low carbon homes for social rent during the 2021-2026 Senedd term. In the first two years, 5,775 homes were delivered towards the target.

Sarah Lavender, relationship manager for Principality Building Society, said: “We are delighted to support Hafod Housing’s ongoing efforts to improve the lives of people throughout Wales”.

Lavender added: “This funding will go some way to help improve the affordable housing need in South Wales, as well as foster the growth of strong communities in Wales.”

Chris Judson, Hafod’s interim director of finance, investments and development, said: “We are very grateful to have secured this essential funding from Principality Building Society. The transaction went very smoothly; we are thankful to Principality for this and for the support of our treasury advisers, Centrus and Devonshires solicitors.

“We are really looking forward to working with Principality going forward and delivering desirable and sustainable homes and communities across South Wales.”