A HOUSING provider has become the UK's first to secure a cheap-rate loan from a European bank.

Less than a year after completing Britain's largest housing stock transfer, involving 36,000 former Sunderland City Council properties, Sunderland Housing Group has secured £75m credit from the European Investment Bank (EIB).

It is the first time a UK social housing company has negotiated direct funding from the bank, rather than through an intermediary, and paves the way for other housing providers to apply.

Providing member states of the European Union with low-interest loans for regeneration, the EIB uses strict criteria for judging applicants.

Its acceptance of Sunderland Housing Group will allow the group to dispense with its current bank loan, saving it millions of pounds over the coming years.

Group finance director Andrew Taylor said: "The EIB won't give money to just anyone.

"Previously, the EIB was not interested in social housing, but we showed them our plans and investment strategy and the outcome for Sunderland and they were very much impressed."

Mr Taylor said although Sunderland Housing Group has set a precedent, it will be difficult for other housing providers to attract EIB loans.

"They will be more interested in the sector, but I don't think it is a given that the EIB will invest in any social housing transfer," he said.

According to Mr Taylor, Sunderland residents will be the ultimate beneficiaries.

"Clearly, if we are paying less to borrow, our money will go further. There will be a tangible benefit for the residents of Sunderland," he said.