Today, I am laying before Parliament a departmental minute setting out the details of a contingent liability that the Ministry of Housing, Communities and Local Government intends to incur under the Infrastructure (Financial Assistance) Act 2012. The contingent liability will be created by a new £3 billion affordable homes guarantee scheme.
The new affordable homes guarantee scheme—announced at spring statement 2019—will be delivered by a delivery partner on behalf of the Ministry under the oversight of Homes England. The delivery partner is being appointed through a fair, open and competitive procurement process, and we have appointed a preferred bidder with whom we will agree the detailed operational arrangements. We plan on awarding the contract over the coming weeks and for the scheme to be open for business by the end of the year. In delivering the scheme, the delivery partner will raise capital from bond market investors and on-lend the proceeds to registered providers of affordable housing in England. The Ministry will guarantee both the proceeds to bond investors and payments by borrowers to the issuing entity.
Through the scheme, the Government will boost investment in providers of affordable housing and support the delivery of a significant number of new affordable homes for those whose housing needs are not currently met by the market.