Housing association Alwel and BNG are joining forces to expand Alwel's housing stock with mid-range rental homes. This non-DAEB financing of €80.7 million from BNG will enable the housing association to build affordable and sustainable homes in Breda, Etten-Leur and Roosendaal. Not only for people on low incomes, but also for those on middle incomes.
'As a housing association, we are there for people who depend on social housing, but also for middle-income earners who are stuck in the housing market. The latter group earns too much for social housing, but can hardly find affordable alternatives,' says Karo van Dongen, director at Alwel. 'There is either no supply, or it is unaffordable for this group of house hunters. We see it as our task to build for this group.' Medium-priced rental properties are those with a rent between approximately €900 and €1,150 per month.
Adding mid-range rental properties also helps Alwel make neighbourhoods more resilient. 'By adding mid-range rental properties to neighbourhoods with a high proportion of social housing, we are creating more diversity in terms of age, family composition and financial capacity. Neighbourhoods and districts are improved by a mix of people,' explains Van Dongen. In addition, mid-range rentals are financially beneficial for housing associations due to the higher rental yield.
'As a housing association, we are there for people who depend on social housing, but also for middle-income earners who are stuck in the housing market. The latter group earns too much for social housing, but can hardly find affordable alternatives.'Karo van DongenDirector at Alwel
Alwel can use financing guaranteed by the Social Housing Guarantee Fund (WSW) to finance social housing. This does not apply to the expansion of the mid-priced rental housing stock. Therefore, Alwel has secured a favourable and flexible financing arrangement from BNG. René Goorden, sector lead for Housing at BNG: ‘Mid-range rental homes play a crucial role in meeting the high demand for housing among middle-income groups. They promote mobility from social housing and contribute to mixed neighbourhoods. This financing is in line with that. We see a lot of social value in the mid-range rental segment and advocate WSW guarantees to improve the financial feasibility of projects.’