A Welsh housing association has agreed a £45 million loan which will help build more property in Powys.

Newydd Housing Association, with nearly 300 homes in Powys has said it is set to “undertake a significant programme of investment in existing and new homes in mid and south Wales” after agreeing a new £45m funding package with Danske Bank.

The structured loan facility is Danske Bank’s first deal with a housing association in Wales and will be used to fund “ongoing investment, including upgrades and updates of existing homes in its portfolio and building new homes”.

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Lee Bolderson, Finance and Resources Director at Newydd said: “Our new long-term partnership with Danske Bank will allow us to invest in new homes and continue upgrading existing homes to meet the ongoing demand for affordable homes in the communities we serve.

“Danske showed a great understanding of the social housing sector and took time to understand our history and vision for the future. We look forward to providing affordable and energy efficient homes to our tenants and customers for many years to come thanks to their support.”

To date £15m of funding has been drawn down to invest in projects which are underway, including the third phase of its development in Llandrindod Wells, which will offer 79 new homes to local people and is being built in partnership with Newydd and Powys County Council.

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Newydd has a target to deliver 600 new homes over the next five years, growing the organisation by at least 20 per cent in terms of stock size. As well as providing attractive, affordable and accessible homes, it is focused on investing in sustainable materials and making its homes energy efficient.

This will include plans for timber framed homes in Llandrindod Wells, which will are set to be completed in 2025,

The Association has said they will be fitted “with air source heat pumps and will also feature photovoltaic solar panels to help reduce both carbon footprint and energy bills, giving the properties an EPC A rating”.