Housing Minister Kris Hopkins has welcomed a deal that will release £500 million additional funding to build new affordable homes across the UK.

This new investment, secured through an agreement with the European Investment Bank (EIB) on 7 January, 2014, will help deliver up to 4,300 new affordable homes to rent. The funding will form part of the £3.5 billion Affordable Housing Guarantees programme, which enables housing associations to use a government guarantee to secure private investment at more competitive rates than they would otherwise.

“The deal with the European Investment Bank is a vote of confidence in our ongoing efforts to restore confidence to our housing market and get Britain building,” said Kris Hopkins. “This £500 million investment will help deliver up to 4,300 new affordable homes across the country, on top of the 170,000 affordable homes we’ve already delivered since 2010.”

Jonathan Taylor, European Investment Bank Vice President responsible for the UK said, “The initiative will significantly enhance construction of affordable housing by housing associations across the country. The European Investment Bank recognises the importance of long-term investment in the housing sector and is pleased to work with the UK government and experienced housing partners through this new, large scale programme.”

Picture: Kris Hopkins during a visit to Chesterton brick factory