Housing Minister Kris Hopkins said that the money would help deliver 4,300 new homes to rent.
The European funding will form part of the 拢3.5bn Affordable Housing Guarantees programme that provides housing associations with a government guarantee so they can borrow money more cheaply.
European Investment Bank vice president Jonathan Taylor said: 鈥淭he European Investment Bank 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.
鈥淔ollowing the 拢500 million EIB loan formally agreed today, we look forward to further engagement with the UK housing sector in the coming months.鈥�
The government has confirmed the first eight housing associations to receive funding through Affordable Housing Guarantees. Together, they will receive up to 拢400m to build, own and manage up to 4,000 homes. They are:
- Devon & Cornwall Housing will borrow up to 拢85m to build 887 homes
- Hexagon Housing Association will borrow up to 拢12.5m to build 74 homes in Greater London and the southeast
- First Wessex will borrow up to 拢88m to build 589 homes in Hampshire and Surrey
- Great Places will borrow up to 拢50m to build 674 homes in Manchester and the north
- Wales & West Housing Association will borrow up to 拢25m to build 251 homes in Wales
- Adactus will borrow up to 拢27m to build 344 homes in Greater Manchester and Lancashire
- Home Group will borrow up to 拢61m to build 642 homes in England
- Paradigm will borrow up to 拢65m to build up to 594 homes across the south and east of England.
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