A SOCIAL housing provider has borrowed £50million in order to build more than 800 new houses.

Chorley Community Housing Ltd (CCH) has taken out the loan, over 40 years, to fund construction of 814 new homes over the next three years.

CCH currently manage the former council housing stock in the borough of Chorley and are part of the larger Adactus Housing Group.

Paul Chisnell, group director of finance at Adactus Housing Group, said: “Having bedded down the stock transfer, completed the initial stock improvement programme ahead of schedule, CCH is now looking to play a much greater role in meeting the demand for quality affordable accommodation in the area.

“Given the scale of CCH’s growth ambitions, we needed a level of flexibility in the early years of this development phase not typically demonstrated by institutional lenders to the sector.

"Building on the existing relationship developed with L&G, we were delighted to be able to work with them to create that flexibility."

Legal and General have provided the loan and said the homes will be built with annuity money, and the return on the loan will be used to pay pensioners annuities. They said the investment match produces a better return for their pensioners than investing in gilts, and provides real economic growth by creating much needed new housing.

Alex Gipson, Lending Manager at Legal & General, said: "Having seen the developments that CCH are delivering at first hand, it is easy to see the positive impact being made within the local communities they touch.

"Their approach has quite rightly been recognised by their recent award and is also reflected by their commitment to delivering new, quality, affordable housing.”