The UK has secured £500m of funding from the European Investment Bank (EIB) to construct new affordable homes across the country.
The deal is part of the £3.5bn Affordable Housing Guarantees programme. Itwill help deliver about 4,300 new, affordable homes for rent by allowing housing associations to secure private investment at more competitive rates.
UK housing minister Kris Hopkins said the deal will restore confidence in the housing market and get Britain building more new properties.
EIB vice-president for the UK Jonathan Taylor said the initiative will significantly increase the construction of affordable housing by housing associations across the UK.
"The EIB recognises the importance of long-term investment in the housing sector and is pleased to work with the UK government and experienced housing partners through this new, large scale programme," Taylor said.
"Following the £500m EIB loan formally agreed today, we look forward to further engagement with the UK housing sector in the coming months."
UK housing associations will receive a share of about £400m to construct, own and manage up to 4,000 homes.
The UK Government has announced the first eight housing associations to receive funding through Affordable Housing Guarantees.
Devon and Cornwall Housing will receive up to £85m to construct 887 homes in those counties.
Hexagon Housing Association will get about £12.5m to build 74 homes in Greater London and the South East, and Paradigm will borrow up to £65 million to deliver up to 594 homes across South and East England, and Greater London.
First Wessex will receive about £88m to build 589 homes in Hampshire and Surrey.
Great Places will receive up to £50m to construct 674 homes in Manchester and the North, and Adactus will borrow up to £27m to construct 344 homes in Greater Manchester and Lancashire
Home Group will borrow up to £61 million to build 642 homes in England.
Wales and West Housing Association will receive £25m to build 251 homes in Wales.
Image: The deal will help deliver about 4,300 new, affordable homes. Photo: courtesy of the UK government.