Housing guarantees
In September 2012, housing guarantees were announced by the government in an attempt to incentivise and kick-start private investment in the housing sector.
The private rented sector (PRS) Housing Guarantee Scheme was introduced with a management contract awarded to Venn Partners in 2014. The aim of the guarantee was to make vital finance available for projects across the UK as long as they have a minimum value of £10 million.
The government promised to guarantee up to £3.5bn of debt which helps to reduce the risk for lenders by guaranteeing to repay the money in the event of a borrower’s default. Taking this approach, housing providers are able to borrow at well below current rates, encouraging more investment in the private rented market. The new homes must remain in the PRS until the money is paid back.
The maximum loan-to-equity ratio of the guarantees is 80:20, with a maximum loan period of 30 years.
A separate guarantee scheme was set up for affordable housing projects. This aimed to unlock £225m of grant funding for registered housing providers in England to deliver up to 15,000 new homes for affordable rent or affordable home ownership.
The Department of Communities’ have extended the deadline for applications, which are processed once detailed planning has been obtained, to December 2017.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
- Affordable housing.
- Guarantees.
- Housing shortage.
- Housing tenure.
- Housing white paper 2017.
- National Planning Policy Framework.
- Private rented sector PRS.
- Public v private sector housing.
- Real Estate Investment Trusts.
- The Community Infrastructure Levy (Amendment) Regulations 2014.
[edit] External resources
Featured articles and news
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.
A brief run down of changes intentions from April in an onwards.
Reslating an ancient water mill
A rare opportunity to record, study and repair early vernacular roofs.
CIOB Apprentice of the Year 2025/26
Construction apprentice from Lincoln Mia Owen wins this years title.
Insulation solutions with less waste for a circular economy
Rob Firman, Technical and Specification Manager, Polyfoam XPS explains.
Recycled waste plastic in construction
Hierarchy, prevention to disposal, plastic types and approaches.
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.