The UK’s housing shortage, and in particular the lack of affordable homes, has become critical in many parts of the country. Not only is the shortfall seen as a threat to the economy, but it also means that large numbers of people simply do not have access to good-quality housing that they can afford.*
Barclays recently played a role in boosting the supply of affordable housing in the South West of England, one of the areas in need of new affordable housing. Barclays acted as Sole Placement Agent on a £60 million private bond that will help Plymouth Community Homes (PCH) build up to 600 affordable homes in the next five years.
This refinancing deal will help us to deliver our vision to be a leading, growing, independent housing association providing homes people want and can afford, to meet the growing demand for quality, affordable homes in and around Plymouth.Nick Jackson, Director of Business Services and Development at Plymouth Community Homes
Barclays successfully placed the notes with a single institutional investor, and negotiated the terms over 25 years, diversifying PCH’s capital structure. Barclays also provided a £35 million revolving credit facility over five years.
This is the first time PCH has used the capital markets to raise money for its activities, enabling it to not only boost its capacity to build new homes, but also to improve the terms on its previous financing arrangements.
*Source: The Times, 5.10.2017 and the National Housing Federation