25 June 2024

Hafod Housing receives £25 million in funding from Principality Commercial to build affordable housing

Hafod Housing, a not-for-profit organisation headquartered in Cardiff, has secured a £25 million loan facility from Principality Commercial, to support the construction of 300 new affordable homes over the next five years with the objective of building strong communities in Wales.

Established in 1968, Hafod offers high-quality affordable housing and resources for people to help maintain both their well-being and independence. Working across seven local authority areas in Wales with 1,250 colleagues, Hafod helps over 16,000 people every year through housing support and health and social care. 

Hafod’s recent projects include the redevelopment of Haydock House in Barry, Cardiff’s Lansdowne Hospital site, and Parc Llanilid in Rhondda Cynon Taf – all undertaken in order to provide essential affordable housing in these areas and positively regenerate the communities they serve. 

The new partnership with Principality Commercial, the commercial arm of Principality Building Society, Wales’ largest building society, will progress over the next three years with the funding helping to build much needed, new affordable homes.

Principality Commercial, lends across England and Wales, providing finance for both investment and development schemes in the commercial and residential sectors, including supporting housing associations.

Commenting on the partnership with Hafod, Sarah Lavender – Relationship Manager for Principality Building Society, said: “We are delighted to support Hafod Housing’s ongoing efforts to improve the lives of people throughout Wales. It is both an honour and pleasure to work with such a well-established organisation whose initiatives align so closely with our own. This funding will go some way to help improve the affordable housing need in South Wales, as well as foster the growth of strong communities in Wales.” 

Chris Judson, Hafod's interim Director of Finance, Investments and Development commented: “We are delighted to have secured funding from Principality Building Society. The transaction went very smoothly; we are grateful to Principality for this and for the support of our treasury advisers, Centrus and Devonshires solicitors. We are really looking forward to working with Principality going forward and delivering desirable and sustainable homes and communities across South Wales.”

To find out more, visit www.principality.co.uk/commercial 

Published: 25/06/2024