Closed for new investment

Launch: 2013

End Date: 2016

Affordable Housing Finance Plc

Overview

Affordable Housing Finance (AHF), a subsidiary of The Housing Finance Corporation, was incorporated in 2013. On 19 June 2013, AHF was awarded the licence to provide guaranteed funding under the Government’s Affordable Housing Guarantee Scheme. As at 31 March 2023, AHF had issued guaranteed secured bonds amounting to £1,744.1m. Guaranteed bank loans drawn at 31 March 2023 amounted to £1,500.0m.

Affordable Housing
Finance Plc in Numbers

£3.2Bn

Capital Lent

32k+

Homes Funded

60

Housing Association Borrowers

Overview & Key Achievements

At Affordable Housing Finance (AHF), the UK Government’s exclusive delivery partner for the Affordable Homes Guarantee Scheme, guaranteed loans were originated during the underwriting window that closed in March 2016.

AHF have managed to create loans resulting in the lowest priced debt to 67 housing associations, whose portfolios and credit appraisals we continue to manage until the maturity of each loan.
By combining a government guarantee with disciplined credit management, AHF cultivated a private–public relationship that unlocked vital delivery of affordable homes.

Exclusive Licence

Agreed an exclusive licence (that ran till the 31st March 2016) with the Ministry of Housing, Communities & Local Government to issue long-term debt to the affordable homes sector for sums up to £3.5 billion.

Scheme Growth

Grown the most successful and innovative guarantee scheme sponsored by the UK Government.

Cost Efficiency

Produced cost effective financing which acts as a stimulus in the construction of affordable housing.

Development Impact

AHGP financing will have supported more than 30,000 homes, along with regeneration projects and various forms of community care.

Lending Scale

More than £3.2bn of financing – representing about 92 per cent of the £3.5bn of UK government guarantees made available for affordable housing four years ago – has been lent to 67 HAs.

Market Leadership

Sustained competitive market prices and remained at the forefront of on-lending to HAs, in conjunction with providing investors protected and profitable opportunities.

About the UK Government Guarantee

Overview

The guarantor unconditionally and irrevocably guarantees to the Guaranteed Creditors the due and punctual performance by the issuer of the Guaranteed Obligations.

1. Guaranteed Creditors being: Bondholders, Coupon holders and Trustee
2. Guaranteed obligations being: all present and future payment obligations and liabilities of the issuer (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) which are, or may become, due, owing or payable to the Guaranteed Creditors under the Bonds, Coupon or Trust Deed, together with all costs, charges, fees and expenses incurred by the guaranteed creditors which are, or may become, due, owing or payable by the issuer under the bonds, coupons the Trust Deed or the Guarantee.

The guarantee is supplemented by an indemnity for all losses, liabilities, costs and expenses resulting from a failure of the issuer to perform or discharge any guaranteed obligation, and/or from the unenforceability, invalidity or illegality of any guaranteed obligations.

The guarantee can only be released when all guaranteed obligations have been unconditionally and irrevocably paid or discharged in full.

Prefunding of issuer accounts ensures timely submission of a notice of demand and timely payment under the guarantee of the guaranteed obligations.

Further Information

  • Financial Statements
  • Governance & Structure
  • Offering Circulars

Affordable Housing Finance (AHF), established in 2013, works in conjunction with the Ministry of Housing, Communities & Local Government (MHCLG) and the European Investment Bank (EIB).

AHF follows a devised set of scheme rules which run in accordance with MHCLG and EIB requirements. Although we work with careful awareness of these relationships, we complete our own credit checks and it is important to remember that investors and borrowers will be in direct business with us and not EIB or the MHCLG.

AHF is a subsidiary of T.H.F.C (Services) which in turn is a wholly owned subsidiary of The Housing Finance Corporation.

The Housing Finance Corporation was founded in 1987 through the collaboration of the Housing Corporation and National Housing Federation.

The Housing Finance Corporation operates as:

  • A profit for purpose organisation that reinvests interest accumulated into The Housing Finance Corporation and any of the relevant subsidiaries.
  • An independent, unregulated corporation with a work force of eighteen skilled and dedicated industry experts. These experts range from a variety of career paths, producing a diverse backdrop upon which The Housing Finance Corporation is built and its experience emphasised.
  • A well-managed business, stemming from a highly experienced board of directors.

 

Scheme Rules

Contact Us

We’re here to help you channel finance into lasting impact. Get in touch to explore how we can support your mission – one home, one partnership at a time.

Location

3rd Floor, 17 St. Swithins Lane,
London, United Kingdom, EC4N 8AL

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