Business partnership reaps benefits for local community
Isle News, 6 October 2009 – Completion of a housing development has shown the community benefits of the long term relationship that has been forged between a high street bank and a housing association.
The Royal Bank of Scotland International (RBS International) and the Guernsey Housing Association (GHA) have been in partnership since 2002 working together on major housing projects. The Bank helped shape some of the concepts in the financing of these projects, ultimately providing funding to the tune of £30 million to support the development of 330 properties at 12 sites. This injection of private finance means the public grant subsidy stretches further, with GHA now using one third public money and two thirds private finance to fund their new homes building programme.
The GHA secured a £17m lending agreement with RBS International two years ago and some of this funding has been used to complete 77 one and two bed flats and houses at Hougue a la Perre. Residents recently moved into their new homes.
31 of the homes at Hougue a la Perre are Partial Ownership, a specially devised scheme which helps first-time buyers in Guernsey take their first step on the property ladder by owning between 40% up to 80% of the property. The GHA owns the remaining percentage. On re-sale purchasers have to sell back to GHA who offer the properties back out to first time buyers.
Scott Philpott, Relationship Director at RBS International, commented:
“RBS International is proud to have established a long-term relationship with the GHA, having been involved in their major housing projects. The partial ownership scheme that is now available to Guernsey residents is a huge boost to the first-time buyers property market. The Bank has been involved with the scheme since its formation and played a key role in developing the partial ownership facility. In total the Bank has agreed to lend more than £3 million to partial ownership customers at no fewer than 5 housing sites. We are delighted it is enabling local families to take their first-step on the property ladder.”
Steve Williams, chief executive of the Guernsey Housing Association, commented:
“The working relationship has been excellent with RBS International enabling GHA to build over 300 homes in the last 7 years, and providing partial ownership mortgages to our purchasers. GHA started in 2002 with no housing stock and an ambition to provide new high quality social housing for local people, so the RBS International loan finance has been crucial to making this come true.”
Additional funding from the Bank has also been used for a key worker housing project at Ville Au Roi, a joint initiative between the GHA, Housing Department, Health and Social Services and the Bank, which was completed in July 2008.
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