It's not all doom and gloom

Two East Midlands Housing (EMH) Group members have signed deals with lenders Abbey, The Royal Bank of Scotland and Barclays Commercial Bank. The agreements speak volumes for the confidence in the long-term viability of the group, comprising a general needs housing provider, a BME and a rural specialist and, most recently, a stock transfer organisation.

Barclays Commercial Bank and The Royal Bank of Scotland are investing £20m and £15m respectively in general needs housing provider East Midlands Housing Association (EMHA). This £35m will be spent building new homes of mixed tenure across the region. Construction will start this year.

Abbey UK Corporate Banking has pledged the £34m needed to modernise and improve the almost 2,200 properties belonging to newly created Three Oaks Homes (TOH). The money will be spent on improvement works and responsive and cyclical repairs.

This social landlord, launched in November following stock transfer from Blaby District Council in Leicestershire, is on the cusp of a major works programme designed to exceed the Government's Decent Homes Standard.

Andrew Kilby, finance director of EMH Group, based in Coalville, Leicestershire, said the loans were substantial in isolation but took on an even greater significance when viewed in the context of the current economic climate.

He said: “The clear message is that established financial institutions view both East Midlands Housing Association and Three Oaks Homes as sound long term investments, no doubt in part because of their affiliation with East Midlands Housing Group.”

Abbey was one of four funders to compete for the Three Oaks Homes loan agreement while EMHA attracted five offers.{mosimage}

Mr Kilby added: “In both cases we were in the fortunate position to be able to choose our funder and are very pleased to be working with Abbey, Barclays Commercial Bank and The Royal Bank of Scotland.”

Paul Stevens, head of housing finance for Abbey UK Corporate Banking, said: “We were delighted to be selected as funder of the Three Oaks Homes stock transfer and look forward to working in partnership with East Midlands Housing Group.”

The money earmarked for TOH will be used to surpass the Decent Homes Standard. During pre-transfer consultation tenants decided they wanted to aim higher than this level and so set their own target, called the Blaby Standard.

To reach the Blaby Standard a comprehensive list of both internal and external work must be completed by 2013. This includes fitting new kitchens to the tune of £6million; £4m on bathrooms; £1.5m on installing central heating; £1.1m on rewiring; £1m for double glazing and £400,000 to address the aids and adaptations backlog.

There is £1.8m in the pot to improve existing or create new fencing and gates; paths; off-street parking; boundary and retaining walls and mobility scooter stores.

Within the five-year budget is £750,000 earmarked for making homes and estates more secure. This may include fitting window locks; upgrading door entry systems; installing security lighting and security doors in communal areas of sheltered schemes.

Colin Norman, chairman of the board, said the Blaby Standard was nonnegotiable. “Over the next five years we intend to carry out the promises in the final offer document to the letter. The Blaby Standard, which was drawn up by tenants themselves, is something I am very proud of and believe it is the foundation on which Three Oaks Homes is built.”

Bruce Kerr, managing director, said he relished the challenge of meeting the standard. He joined the organisation in the months preceding transfer from London and Quadrant Housing Trust, where he was an assistant director.

He said: “The staff and I are really looking forward to the challenges of the future. There's a lot of work to be done to create an RSL that delivers great customer service and, while we won't get there overnight, we do have the resources and the willing we need to meet the promises made to tenants prior to stock transfer.{mosimage}

Most important among these is achieving the Blaby Standard. “Over the coming months we expect all residents to notice a big change in their housing service as we put in place all the plans we've been developing over the past year. We won't stop looking for improvements, even after we've hit all our targets, and I am confident Three Oaks Homes will become a landlord that takes pride in aiming to be one of the best social housing providers in the country.”