Mercian Housing Association has bought a company that provides low-income homeowners with property improvement loans.
The Birmingham-based landlord bought ART Homes for an undisclosed sum on 6 November.

The company was previously part of Aston Reinvestment Trust, which gives loans to small businesses unable to borrow from banks. ART Homes lends £2m a year to householders in Birmingham and Solihull.

Mercian plans to expand the company's work. The association's chief executive, Laurice Ponting, said it will push ART Homes' business across the West Midlands, taking in areas such as Dudley, Walsall and Stoke. Eventually, he hopes to provide the loan service across the UK.

"There's the potential to provide services in other parts of the country because in market renewal pathfinders, private sector renewal is a key priority," said Ponting. "We hope some of the other pathfinder areas will approach us."

Mercian has bid for £7m over two years from the regional housing board to support its property improvement work.

Under ART Homes' approach, the council makes a home improvement loan to a householder and the loan company matches this with private finance.

The company also administers the loans, which are an average £6500 each. They are aimed at people with home equity but low incomes who cannot borrow from banks.

Source

Housing Today