A housing association has announced plans to build 6,000 houses across Gloucestershire and South Gloucestershire in the next eight years.
Bromford has raised £100m to fund a new homes programme and aims to build 1,100 new homes in the current financial year plus a further 11,000 by 2028.
The housing association wants to build half of these in Gloucestershire and South Gloucestershire and is currently building in Wickwar, Lyde Green, Thornbury and Dursley.
Bromford already owns more than 8,600 homes in South Gloucestershire.
They have secured the funding from Legal & General.
Imran Mubeen, head of treasury, at Bromford, said: “We have taken a pro-active approach right across the business to managing the challenges and opportunities arising from Covid-19. We have now resumed development and look forward to delivering more homes and core services at a time our communities and families rely upon us more than ever.
“We already benefitted from access to over half a billion pounds of cash and available loans, and our business plan is agile and able to manage any new scenarios.
“Whilst we had no immediate requirement for new funding we have agreed this deal now to lock-in the exceptionally low rates in the market whilst arranging to draw the funding to build new homes in 2021.
“Ultimately, the more money we save on funding, the more money we can re-invest in building more homes and delivering more of our core services to the communities we serve.
“It is important that we work with funders and investors who understand our long-term strategic plan and growth agenda, and we are delighted to extend our partnership with Legal and General who continue to support our journey and appreciate the way we work.”
Steve Bolton, head of private corporate debt, Europe, said: “Legal & General is uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide new jobs, housing, productivity and wage growth.
“We have a role to play in supporting the UK through the Covid-19 crisis and this latest investment is testament to that support.
“Our investment in Bromford matches our extended liabilities and delivers both real economic growth and social value for the UK. We’ve seen lots of change in the past few months but the fundamental need for good quality homes remains a constant.
“There is an urgent need to provide stable homes for millions of households on waiting lists, and partnerships like this will help deliver on that need.”