£350 million of new Blend loans

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.”

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.”

-ENDS-

Notes to editors

For more information:

Housing Associations: David.Brigden@thehousingfinancecorp.com

Investors: Will.Stevenson@thehousingfinancecorp.com

Media: Media@thehousingfinancecorp.com

About The Housing Finance Corporation

The Housing Finance Corporation has been the UK’s leading affordable housing aggregator for more than three decades, providing innovative funding solutions for 149 housing associations across all four nations of the UK. The Housing Finance Corporation has amassed a near £8bn loan book to date and continues to expand its range of financial products to serve the needs of the social housing sector. The Housing Finance Corporation has made significant contributions toward solving the UK’s affordable housing crisis, having funded 32,000+ homes under Affordable Housing Finance Plc (AHF), which oversaw the government’s initial Affordable Housing Guarantee Scheme. The aggregator launched Blend Funding Plc (Blend) in 2018 which has grown to provide committed facilities to 33 housing associations totalling over £1.9bn. In February 2025, the organisation announced the launch of a groundbreaking £150m partnership with the National Wealth Fund (NWF) to finance retrofitting of affordable homes alongside its new lending vehicle THFC Sustainable Finance Plc (TSF).

About Vico Homes

Vico Homes provides affordable housing across the north of England, with more than 32,000 properties that are home to tens of thousands of people. People are at the heart of everything we do, and we are committed to creating well-managed, sustainable communities where residents can thrive. Regulated by the Regulator of Social Housing, we hold the highest ratings for governance (G1) and financial viability (V1), reflecting our strong management and financial stability. Built on the foundations of WDH, Vico Homes continues to deliver quality homes and services that make a positive difference to people’s lives.

For more information visit: https://www.vicohomes.co.uk/

About Aster Group

Aster Group is a housing association which provides quality, affordable homes to thousands of people across the south of England and London. Its vision is that everyone has a home. Aster’s skilled team is committed to providing a good, seamless service with a strong personalised focus. They constantly listen to and engage with customers to co-design and improve their offer so customers feel empowered to thrive.

Aster Group is committed to playing its part in tackling the housing shortage by delivering a wide range of housing options. During 2024/25 the business delivered 984 homes offering affordable and social rent, shared ownership and open market sale options and is set to provide circa 980 new homes during 2025/26. Looking ahead, the Group plans to invest £1.6 billion to achieve its long-term target to deliver 7,000 homes over the next seven years. Aster is on track for meeting and exceeding its goal to ensure the energy efficiency in all its homes meet at least EPC C standard by 2030.

The not-for-dividend business was established in 1990 and has £2.5 billion worth of social housing assets. The Group reinvests profits from open market sale and shared ownership to support the development of affordable homes. It owns and maintains over 37,000 homes and employs over 2,000 people.

Aster is relentless in its mission to extend a positive impact into its communities. This is achieved in many ways including through The Aster Foundation, which is a registered charity.

For more information visit: www.aster.co.uk

About whg

whg (Walsall Housing Group Limited) is a regional housing association with 22,000 homes owned and managed across the Midlands, serving local communities and supporting regional regeneration.

For more information visit: https://www.whg.uk.com/