Multinational universal bank Barclays will join Housing Growth Partnership as the two new funding partners at Pocket Living’s Waltham Forest scheme.
HGP is a social impact investor that supports the regional residential development community to increase the number of UK new homes.
Barclays will be providing Pocket Living - which aims to provide 'well-designed, affordable and sustainable' homes to Londonders - with a £16.5 million senior and mezz loan, while HGP will provide a £4.3 million equity injection. Pocket Living has also confirmed it will provide over £2 million in equity for the joint venture.
Ian Foster, relationship director at Barclays, explains: “We have followed the Pocket story for a number of years and are pleased to have been able to support them with the lending on this ambitious new development. This deal further underlines our ongoing commitment to the UK housing sector, and we look forward to continuing to work closely with all our valued clients to help deliver affordable housing for local communities.”
What will the partnership deliver?
With almost 1,000 successfully delivered new homes already in the company's portfolio, Pocket Living hopes to continue helping more first-time buyers own their first dream home.
Pocket Living aims to deliver 90 one-bedroom homes at the Forest Road development in Walthamstow, which is scheduled to launch in summer 2022. These will be low priced as they will be sold at a minimum of a 20% discount to the local market.
First-time buyers who live or work in Waltham Forest, and earn below the Mayor of London’s income threshold, will meet the housing criteria.
What makes the partnership a unique one is it allows Pocket to explore options for supporting cities outside of London. It is also the first time Barclays has worked alongside HGP.
Paul Rickard, chief financial officer at Pocket Living, clarifies: "This marks our first deal with HGP and Barclays and allows us to increase the delivery of much-needed new affordable homes. At Pocket, we build homes for the people who are vital to a thriving city and yet can’t afford to buy a home and put down roots. Around 40% of these people are key workers otherwise let down by the London housing market.
“Pocket has a successful track record, but we know there is still more to be done. HGP and Barclays share this commitment to meeting the housing needs of city makers and this funding deal provides a blueprint that can lead to a significant increase in the delivery of affordable homes both in and out of London.”
James Hutchinson, investment director at Housing Growth Partnership, adds: “We are delighted to be working with Pocket Living and Barclays on this development, which will build quality affordable homes for those living in the local community. This deal marks the continued success of the Housing Growth Partnership which has supported housebuilders to deliver over 4,500 homes across the country.”