---
title: "Affordable Homes Guarantee Scheme 2020 (AHGS20)"
ocid: "ocds-h6vhtk-042edf"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-042edf"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-042edf.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-042edf.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "DEPARTMENT FOR LEVELLING UP, HOUSING AND COMMUNITIES"
published: "2024-01-22"
---

# Affordable Homes Guarantee Scheme 2020 (AHGS20)

Buyer: DEPARTMENT FOR LEVELLING UP, HOUSING AND COMMUNITIES  
Current stage: Award  
OCID: ocds-h6vhtk-042edf

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## Summary

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.

### 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.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/002072-2024 |
| 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 |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 22 Jan 2024 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 15 Oct 2020 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £213,000,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Not specified |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | DEPARTMENT FOR LEVELLING UP, HOUSING AND COMMUNITIES |
| Locality | LONDON |
| Post town | South West London |
| Postcode | SW1P 4DF |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI3 Inner London - West |
| ITL 3 | TLI35 Westminster and City of London |
| Local authority | Westminster |
| Electoral ward | St James's |
| Westminster constituency | Cities of London and Westminster |
| Delivery location | Not specified |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | SALTAIRE HOUSING |

## CPV Codes

### Divisions

- 66 - Financial and insurance services

### Codes

- 66100000 - Banking and investment services

## Release History

- 22 Jan 2024 at 12:15 - AwardUpdate - Award Notice - https://www.find-tender.service.gov.uk/Notice/002072-2024

## Notice URLs

- https://ted.europa.eu/udl?uri=TED:NOTICE:526473-2019:TEXT:EN:HTML
- https://www.gov.uk/government/organisations/department-for-levelling-up-housing-and-communities

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-042edf. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-042edf.json.