This week the European Investment Bank (EIB) announced it will be lending 1 billion pounds to the United Kingdom to assist housing associations in building homes. The EIB is the EU’s own bank operating to fund projects that are likely to improve economic and social cohesion.
With the EU referendum around the corner, ‘leave’ campaigners have been quick to label the EIB’s move as a bribe. However, the European Investment Bank has been investing in UK social housing and urban renewal since 1994.
Banks, who previously were the sectors biggest loan providers, have held back on lending since the financial crisis. As a result, social landlords have struggled to secure long term funding for development of affordable homes. The EIB has been a lifeline in this area which has been so seriously impacted by financial cuts. Last year alone, the EIB invested in 40 projects across Britain. These contributions attract further investment in the sector.
It is still unclear how a Britain outside of the European Union would fund investment for the construction of new homes. It will be interesting to see what proposals will be put forward for the future of housing in the UK.
A lack of affordable housing has been an ongoing issue in the U.K. Increased competition for homes, increased rent and poor housing conditions are just some of the problems that have come about as a result. There are more than 1.8 million households in England on the waiting list for a home. This is an increase of 81% since 1997. This also explains the sharp increase in homelessness in the U.K.
If you are homeless or threatened with homelessness our expert housing law team can assist you. You may be eligible for legal aid to help pay your solicitors costs. Contact our specialist housing law team for assistance, legal aid may be available to you to pay your legal fees.
By housing law specialist, Iman Nauman