A £165 million fund has been secured to help housing association bosses pay for 500 new homes in Boston.
Boston Mayflower has successfully raised the funds from international investors.
Although it is not the only housing association to approach the capital markets for cash – it is the first in the country to secure funding from two sources at the same time, a move which means it is able to borrow the money at a low interest rate.
Mayflower chief executive Murray Macdonald said: “The ins and outs of the financial arrangement are exciting from a business perspective as we are the first UK housing association to secure this sort of deal.
“In my opinion though things get really exciting when we think about what this money can do in our community.
“Boston Mayflower already provides almost 5,000 affordable homes in Boston and the surrounding villages but the number of people across the UK struggling to find a home is rising and we want to do more.
“Over the next five years working with local builders we plan to build and acquire an extra 500 homes to provide people with more affordable, local options.”
The funding news has been welcomed by Boston borough councillor Mike Gilbert.
The housing portfolio holder told The Standard: “This can only be beneficial to us in terms of increasing the borough’s housing stock.”
It is not yet clear as to where Mayflower’s new homes may be located.
However, Coun Gilbert believes there is plenty of scope in the borough to accommodate them.
He said: “We are an area that is surrounded by land, much of it is prime for building. I shouldn’t think it will be too difficult to identify suitable locations.”
Labour councillor Paul Gleeson said the announcement was ‘great news’, adding: “The creation of housing that is accessible to people is an important thing.”
The news comes as the pace of building looks set to pick up across the borough.
The Quadrant plans, if rubber stamped by the Government, aim to deliver 500 homes in the first phase while two weeks ago we reported how two separate applications for either side of Toot Lane in Fishtoft could bring 419 homes.
Coun Gleeson added: “There’s no denying things are beginning to move. Developers are beginning to be attracted back to Boston now which must be a good thing. There still seems to be a lack of infrastructure to support people coming here though.”