Welsh Government funding helps us build homes in Neath
We've recently started building the second phase of our affordable housing development in Cimla, Neath using an innovative funding stream from the Welsh Government.
The eleven new homes at Golwg y Dre are our first to be partially funded by the Welsh Housing Finance Grant (WHFG), a scheme that allows registered social landlords (RSL’s) to borrow in the form of a bond. The Welsh Government will provide £4 million a year over the next 30 years to support the repayments liable to housing associations, with other repayments serviced by rental income secured from the new homes that are being built.
The WHFG has been developed in response to the decrease in long-term private finance available to RSL’s from lending institutions. This innovative new package aims to help increase housing supply and deliver quality, affordable housing while also boosting economic activity.
Our Chief Executive Michael Williams explains "The development at Golwg y Dre is our first in Neath Port Talbot being built using this new funding stream. We are committed to increasing the supply of quality affordable housing locally and are keen to participate in new and innovative financing arrangements that assist us to deliver our priorities."
The first phase at Golwg y Dre was voted one of Inside Housing Magazine’s top 50 UK Affordable Housing Developments of 2013. The £1.5million second phase will consist of six 2 bedroom houses and five 3 bedroom houses. The construction work will be undertaken by local Neath-based contractor Hale Construction.
Commentating on the development, Jonathan Hale, Managing Director, said "Having been involved in Phase 1, one of the first Code 5’s to be built in Wales, we were very pleased to be involved in Phase 2. At Hale we strive to create and secure local jobs within the community and we’re very pleased that Gwalia have partnered with us to achieve this."
The total WHFG pot consists of £120m of investment that will be used to build over 1,000 affordable homes by 2016.
Cllr Peter Rees, Deputy Leader of Neath Port Talbot Council said "The Welsh Housing Finance Grant is an exciting additional funding stream that allows us to work with partner organisations, like Gwalia, to develop more quality housing that helps to meet the county’s house building goals over the coming years. In addition, we have also supported the development through the allocation of £900,000 from the authority’s Social Housing Grant programme."
Golwg y Dre phase 2 will be completed and ready for occupation by the local community in spring 2015.