Interest rate rise could delay the building of thousands of social homes

Due to surging costs, the development of some planned social homes may come to a halt and go back to assessment stage even if builders are already on-site. Stock picture

An interest increase by the State’s social housing lender could delay thousands of homes being built.

On Friday, the Housing Finance Agency informed approved housing bodies it would put its lending rate up 0.65% to 3.15% from November. It had previously raised rates 1% in May.