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
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation which closes 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.
Construction Products Reform Green Paper and Consultation
Still time to respond as consultation closes on 21 May 2025.
Resilient façade systems for smog reduction in Shanghai
A technical approach using computer simulation and analysis of solar radiation, wind patterns, and ventilation.