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Affordable Homes Guarantee Scheme 2020 (AHGS20)

DEPARTMENT FOR LEVELLING UP, HOUSING AND COMMUNITIES

This public procurement record has 1 release in its history.

AwardUpdate

22 Jan 2024 at 12:15

Award Notice
Summary of the contracting process

The Department for Levelling Up, Housing and Communities has awarded a contract for the Affordable Homes Guarantee Scheme 2020 (AHGS20) to Saltaire Housing Ltd. The contract involves providing banking and investment services to support the development of new affordable homes and initiatives for energy efficiency and housing decency improvements. The contract has a value of £213 million and was signed on October 16, 2020, with a duration of 42 years. The contracting authority is based in London, UK, and the procurement stage is in the award phase.

This tender for the AHGS20 presents opportunities for businesses in the banking and investment services sector to participate in providing financial support for affordable housing initiatives. Companies with expertise in financing affordable housing projects and promoting energy efficiency and housing decency improvements would be well-suited to compete for this contract. The extension of the application window to April 2026 and the increase in the Cumulative Guarantee Amount to £6 billion create a conducive environment for businesses to contribute to the scheme's objectives and promote sustainable housing solutions.

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Notice Information

Notice Title

Affordable Homes Guarantee Scheme 2020 (AHGS20)

Notice Description

Lot Information

Lot 1

Since the award of the concession, a more hostile macro-economic environment and a growing and urgent need for RPs to address decarbonisation and decency issues resulted in RPs deprioritising delivery of new affordable homes in favour of investment in existing assets. By allowing lower-cost scheme funding to be split between new development (with a minimum of 50% of each loan to be used for this purpose) and decarbonisation and remediation, RPs are now incentivised to carry on developing while simultaneously addressing issues with their existing stock, rather than pausing or significantly cutting back on development. The modifications to the concession agreement were therefore necessary to achieve the scheme's primary objective of providing lower cost debt to enable RPs to develop more homes than they would otherwise have done in circumstances where for both economic and technical reasons as described further below it is not possible to change the concessionaire in order to facilitate the Tranche B lending. The Department required changes to be made to the Scheme Rules so as to broaden the range of delivery undertakings which may be eligible for funding (referred to as "Scheme Expansion"), to include improvements relating to energy efficiency and housing decency as well as the construction of new-build and additional affordable housing. Those improvements will be facilitated via 'Tranche B' loans (while an amount equal to 'Tranche A' loans must continue to be spent on the delivery of new affordable housing). Changes were also made to the concession agreement to clarify or in some cases modify the current rules of the scheme, to ensure it remains accessible to a broad range of RPs whose business plans incorporate a degree of new development (referred to as "Scheme Acceleration"). As part of the Scheme Expansion and Scheme Acceleration, consequential changes have been made to the concession agreement and programme documentation (as more particularly described in section VII.2.1 below). This included an increase to the Cumulative Guarantee Amount to PS6bn and an extension to the application window to April 2026. In respect of the increase to the Cumulative Guarantee Amount and the extension of the guarantee application period, the concession agreement contained provisions contemplating these particular modifications (clauses 3.1 and 7.2 respectively). To that end, the Department's view was that such modifications are justified on the basis that they are compliant with the requirements of Regulation 43(1)(a) of the CCRs. In respect of the remaining modifications referred to elsewhere within this notice, the Department viewed that such changes are justified on the basis that they are compliant with the requirements of Regulation 43(1)(b) of the CCRs for the reasons set out below.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-042edf
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/002072-2024
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

CPV Codes

66100000 - Banking and investment services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£213,000,000 £100M-£1B

Notice Dates

Publication Date
22 Jan 20242 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
16 Oct 20205 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Not Specified
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT FOR LEVELLING UP, HOUSING AND COMMUNITIES
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
SW1P 4DF
Postcode Area
South West London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

Saltaire Housing Ltd

Further Information

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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