A History of THFC
Since 1987 THFC has served the affordable housing sector through the bad times and the good, innovating and adapting along the way.
1987
The Housing Finance Corporation is founded through a partnership between the National Housing Federation and the Housing Corporation to provide housing associations with long-term capital markets funding.
1988
The Housing Act is passed by Parliament, freeing housing associations to access private finance. The ‘mixed-funding model’ takes off as associations blend grant funding with private finance to expand the provision of affordable housing.
© Anchor Hanover
1998
THFC introduces the European Investment Bank (EIB) to the UK’s housing associations. Over the next twenty years EIB will invest over £4billion in UK social housing.
2008
THFC continues to issue throughout the Financial Crisis as investors looked at housing associations as defensive investments.
© A2 Dominion
2012
THFC is selected to manage the investment of the JESSICA London Green Fund, a European initiative to promote sustainable investment. £12million is lent to three associations—Gallions HA, Origin Housing and A2 Dominion—to finance energy efficiency improvements to housing stock.
2013
THFC is chosen to deliver the UK Government’s Affordable Homes Guarantee Scheme. Affordable Housing Finance Plc (AHF) is founded; over 3 years it would lend £3.2billion at some of the lowest costs of funding ever seen by the sector, helping to build over 32,000 new affordable homes.
© Jigsaw
2014
AHF issues the tightest priced public bond transaction in 26 years of private finance in the housing sector.
2016
One of THFC’s and the sector’s first ever bonds, issued in 1991, matures. By today’s standards the THFC Indexed 11.5% debenture stock was eye-wateringly expensive, but it was recognised as having paved the way for the strong growth of the sector and its use of private finance.
© New Gorbals
2018
bLEND is launched as an alternative to own name bonds and private placements. Its innovative model offers housing associations streamlined access to capital markets through its £2bn MTN programme. bLEND launches with an inaugural £250m bond and an A2 Moody’s rating.
2019
THFC’s Funding no.3 bond reaches £1bn threshold, five years after it was launched. It remains one of the largest public bonds in the social housing sector, and is the second THFC Group bond to exceed £1bn, after the £1.3bn AHF bond.
© New Gorbals
2020
In a transaction to lend £4.5m to Scottish housing association, New Gorbals, THFC breaks the 2% barrier with a rate of 1.998%.