With the provision of EUR 170 million in financing by Rabobank and BNG Bank, a sustainable partnership has been established to address the shortage of homes in the mid-rental segment.
This enables Wonen Limburg to realise the ambition it has had for years, namely to provide not only social housing but also suitable rental accommodation for middle-income households.
Wonen Limburg, the largest housing association in Limburg, feels responsible for people who are unable to find housing independently. This applies to people on low incomes, but also to people with middle incomes. In recent years, demand for rental properties in the mid-range segment has risen significantly. These are homes that are slightly more expensive than social housing, above the threshold of 710 euros and rising to around 1,000 euros per month. The supply of these homes falls far short of demand. Larger institutional investors and developers are currently unable to meet this demand sufficiently.
Households earning just over £40,000 a year have great difficulty finding suitable housing. They earn too much for social housing, where they once started out, and too little to buy. One of the consequences of this is that movement in the social housing segment is stagnating and it is also becoming increasingly difficult for first-time buyers to settle somewhere.
Stricter legislation and regulations also stipulate that housing associations may only allocate social housing to people with the lowest incomes. In order to retain middle-income households in the region, Wonen Limburg recently established Wonen Limburg Accent BV. This is a legal spin-off that makes it possible to continue to facilitate the necessary growth in the mid-range segment, in addition to the housing association's core task of providing social housing.
In order to realise these activities, Wonen Limburg Accent BV has been granted a loan from Wonen Limburg. According to the law, this is permitted on a one-off basis, provided that it is repaid within 15 years. Given the current low interest rates, it is advantageous to repay this loan now with the financing provided by Rabobank and BNG Bank. This will enable Wonen Limburg to reduce the number of outstanding loans and invest more in social housing. In addition, the financing offers more opportunities for new investments, such as the purchase of homes, new construction and sustainability. In addition to this financial collaboration, the three partners also strengthen each other by making optimal use of each other's expertise. For example, Rabobank has very specific knowledge of the (local) property market. And BNG Bank, as the most important financier of housing associations, uses its sector knowledge to help Wonen Limburg realise its ambitions.
Both banks see clear social added value in this development. This includes the liveability and sustainability of neighbourhoods and communities, themes that are also high on the social agenda for both banks. Increasing the supply of mid-range rental properties creates more room for movement. This will also lead to more mixed neighbourhoods and residential complexes, which is conducive to the vitality of the residential and living environment. This joining of forces will ultimately benefit all residents of Wonen Limburg and Wonen Limburg Accent BV. Rabobank and BNG Bank hope to be able to play this role in more regions in the Netherlands. The problem of mid-range rentals is not limited to the working area of Wonen Limburg.