Chiltern Hundreds marks its 15th birthday with a £50m loan
The UK's first stock transfer celebrated its 15th birthday with a £50m loan last week. Chiltern Hundreds Housing Association, which received stock transferred from Chiltern council on 5 December 1988, will spend the cash on a 2500-unit expansion.

The social housing landscape has changed significantly since the association was set up: its initial loan package was led by BNP Paribas, which no longer lends to social housing groups; and margins on borrowing have fallen a long way since that deal.

"There was only one lender in the market then," said Andy Nicol, group finance director at Paradigm Housing Group, Chiltern Hundreds' parent. "Margins were bigger in the beginning but transfers across the board have fallen right through the floor."

Four years after the transfer, Chiltern Hundreds shifted the bulk of its borrowing – £46m – to Bradford & Bingley and has stayed there ever since. It drew down £37m of that loan and eventually built its facilities up to £150m before taking out this loan.

For every 100 properties Hillingdon give us, we build or buy another 70 and give the council nomination rights

Andy Nicol, Paradigm Group

Transfers have also changed since 1988. Chiltern Hundreds helped to create the traditional model for transferring council stock in one go but now the housing association is working on another mode of transfer: a "trickle transfer" of stock from Hillingdon council, west London.

"For every 100 properties it gives us, we build or buy another 70 and give the council nomination rights," Nicol explained.

Source

Housing Today