Supporting Housing Associations Through Local Authority Lending Facilities Nick Keeling nkeeling@arlingclose.com

Arlingclose has successfully arranged almost half a billion in lending facilities for housing associations, strengthening the connection between local authorities and the housing sector. Our recent transactions have garnered attention, including a notable deal with Optivo prior to its merger with Southern Housing. This transaction, over £70m from a group of councils, featured in Social Housing Magazine, highlighting the innovative solutions we deliver.

At the National Housing Federation’s Treasury in Housing Conference in 2023, we hosted a well-received Breakfast Briefing, where Southern Housing and Sovereign Network shared insights into their experiences with local authority funding. We arranged £150m across four facilities during 2023 and 2024, including three new revolving facilities of £45-50m each for prominent London-based housing associations. These achievements bring the total arranged in the past two years to £300m, a testament to our ability to structure facilities tailored to individual borrower needs. Our flexibility, including extending existing arrangements when necessary, has been a key factor in this success.

Our advisory work extends across over 160 local authorities, positioning us to explore potential solutions to the financial challenges faced by housing associations. The unique flexibility offered by local authority lending sets these transactions apart from other market options. Importantly, the growing focus on ESG considerations within the local authority sector has increased demand from those authorities that are looking to achieve a social impact from their treasury management activity.

Although recent transactions have averaged £50m, Arlingclose has successfully arranged facilities across a wide range of sizes, reflecting the diverse financial capabilities of our local authority clients. This includes transactions under £1m, demonstrating our ability to facilitate lending opportunities for housing associations of all sizes, whether rated or unrated.

In every transaction, Arlingclose acts as a liaison between lenders and borrowers, assisting with documentation, drawdown timings, and facility extension requests. Our work also supports merger consents and other borrower requests where these do not impact the long-term creditworthiness of the housing association.

For 2024 we have once again been invited to host the Breakfast Briefing at the National Housing Federation’s Treasury in Housing Conference on 10th October, discussing local authority funding facilities with Chris Ellmore from Moat Homes and Michael Nutman from Anthony Collins Solicitors. We will also exhibiting - please visit us at stand 8 to discuss how we can support your housing association's funding needs or email us at treasury@arlingclose.com for more information.

Related Insights

Arlingclose advises on £73m medium term loan facilities for Optivo Housing Association

Can Local Authorities Help Fund Your Housing Association?

Housing Association Funding Arrangements