The Housing Finance Corporation, the UK’s leading affordable housing aggregator, has today announced that it has agreed £350 million of new lending from its Blend Funding Plc (Blend) vehicle. The loans to three housing association partners will support the delivery of new affordable homes and strengthen the long-term financial resilience of the social housing sector.
A £150 million loan to Vico Homes was funded through a £250 million tap of Blend’s recent 7-year bond, with £100 million being retained to fund future Blend drawdowns. The deal achieved a yield of 4.999% and an all-in spread of 88bp over the Gilt, reflecting strong execution for Blend’s borrowers. With a total of £250 million bonds retained, Blend can respond rapidly to market opportunities and provide housing associations with shorter maturity capital markets funding as an alternative to bank loans.
Additionally, two £100 million instalment fee facilities provided to Aster Group and whg offer the borrowers greater flexibility, allowing them to access funds as needed whilst only paying interest on the amount drawn.
The Housing Finance Corporation launched Blend in 2018. To date it has lent circa £2bn to 33 borrowers enabling them to deliver the sustainable and high-quality affordable housing supply the UK desperately needs.
Ben Rick, Chief Commercial Officer, The Housing Finance Corporation, said: “These latest transactions highlight our role in supporting housing associations through the provision of fixed rate finance, strengthening the sector and building communities across the country. We are delighted to deepen our partnerships with Vico Homes, Aster Group and whg, and look forward to seeing the positive impact this financing will help deliver.”
David Brigden, Senior Commercial Director, The Housing Finance Corporation, said: “Blend’s model allows us to offer stable, flexible funding at scale, aligned to the long-term needs of housing providers. Each of these transactions demonstrates the ongoing appetite for dependable capital that supports development plans while managing financial risk. We are proud to work collaboratively with our borrowers located nationwide to structure solutions that meet their objectives and reinforce sector resilience.”
Neil Warren, Executive Director of Resources at Vico Homes, said: “We’re proud to build on our partnership with The Housing Finance Corporation by securing an extra £150m of funding this year. Their speed and flexibility through Blend gives us the confidence to keep moving forward with our ambitious 10-year plan. This funding isn’t just about growth. It’s about impact. At Vico Homes we’re creating more high-quality, affordable homes that make a real difference for families and communities. Blend plays a crucial role in giving us the adaptable, cost-effective capital we need to stay resilient and deliver on our promise, even in a challenging market.”
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Paul Jeffries, Director of Treasury, Aster Group, said: “Through this £100 million Blend facility, we have the flexibility to access long-term funding when market conditions are right, maintaining a strong, diversified funding portfolio and allowing us to continue investing in our homes and communities.”
Sangita Surridge, Corporate Director of Finance, whg, said: “The new £100 million facility provides whg with access to Blend – a flexible, affordable liquidity option with an extended availability period, including the possibility of multiple tranches. This strategic approach will support whg’s development ambitions, ensuring that capital is available whenever it’s needed to drive growth and deliver new homes.”
