Principality Building Society is to provide a £50 million fund to help smaller housing developers build homes across Wales.
The society also announced it will increase funding for smaller housing associations in Wales by a further £25 million, having made £50 million available at the end of 2017.
Principality’s commitment to supporting the Welsh housing agenda follows the recent Affordable Housing Review. The building society also helped to fund The Mill in Canton, Cardiff and the Welsh Housing Partnership in recent years, both of which were referenced in the Review.
‘We have been monitoring the debate around possible barriers facing smaller house builders. One has been a lack of competitively priced funding, particularly in areas not well serviced by the wider banking community,’ said Jim Brook, head of the relationship team at Principality Building Society Commercial.
‘We have been prominent in supporting Welsh SMEs for a number of years but have the capacity to do so much more. If collectively we are to deliver on ambitious housing targets, then small to medium developers have a key part. This initiative is aimed at giving heightened awareness of the role which Principality can play in helping them,’ he explained.
‘As a mutual building society our purpose is to help people prosper in their homes. We have an experienced team that will help to deliver a consistent service and approach via these initiatives,’ he added.
According to Peter Hughes, divisional managing director pf Principality Commercial, the demand for the first tranche of the £50 million Housing Association pot has been strong across Wales. ‘The sector tell us they like the certainty of longer term funding. As a lender with a strong Welsh identity, we will continue to help deliver the housing agenda in Wales,’ he said.
It has been welcomed by Welsh Minister for Housing and Local Government, Julie James. ‘Supporting SMEs to overcome barriers to building new homes is a key priority for the Welsh Government so we very much welcome lenders such as Principality making this commitment,’ she said.
‘Principality have been longstanding lenders to Housing Associations in Wales and we appreciate their continued support to the sector,’ she added.
