For release on 28 November 2008

							                                                          For release on 31 July 2008
THFC Contact:
Fenella Edge Group Treasurer: 020 7337 9923                 Mobile: 07774 400085
e:fenella.edge@thfcorp.com

THFC Press Release

THFC Funding (No 1) PLC (“THFC Funding”) Issues a further £80m of 27 Year
Eurobonds, rated AA- by Standard & Poors through RBS bringing total outstanding to
£249m.

At a time of continuing uncertainty in financial markets THFC has tapped its THFC
(Funding No 1) plc bond, raising the largest amount in a single transaction since the
original bonds were issued in 2004. This shows that institutional investors consider
UK Housing Associations to be safe, secure investments and that long dated fixed
rate bonds match their required investment profile. “With concern growing in the RSL
sector around the availability of bank finance and an ever growing concentration of
funding sources, it is reassuring for borrowers to know that there is a deliverable
alternative” said Fenella Edge, Group Treasurer of THFC. “We have an off-the-shelf
straightforward capital markets solution for borrowers who are looking to diversify
their sources of funding”.

Shorter term swap rates and LIBOR fixings have remained at their heightened levels
and long dated bond funding is beginning to be more attractive borrowers. For
Associations the ability to borrow without elaborate structuring or potentially
restrictive corporate covenants is important.

The effective interest rate for the 27+ year funding was 5.967% and the issue was
oversubscribed by investors.

For the four borrowers the following factors were important in choosing THFC’s bond
route:

      Deliverability within contained timescales.
      Optimisation of the security already charge to THFC to access new money.
      An ability to forward fund development programmes at a known cost.
      Diversification away from a small group of bank lenders.

THFC completed the majority of work to bring the deal to market in 22 days – very
fast by comparison with other bonds and important in volatile markets. “There is a
tendency for legal and other associated costs to over-shoot if these transactions are
not kept on a very short timeline. By keeping this period as short as possible we play
our part in delivering efficient funding solutions to our customers” said Edge. “We are
seeing more interest from Housing Associations looking to tap the capital markets
and are working on the next transaction already”.

Borrowers in this transaction are:

Equity Housing Group –               Karen Hughes, FD               0161 486 7616
                                     Steven Jackson, CEO            0161 486 7600
“Johnnie” Johnson Housing Trust      Harvey Norton, FD              0162 587 0138.
One Housing Group                    Barry Aspland, FD              0207 428 4274.
Yorkshire Housing Group              Tansy Hepton, FD               0113 200 3321
                                     Guy Millichamp, Treasurer      0113 200 3321
Note to editors

THFC is an independent, specialist, not-for-profit finance company that makes loans
to over 120 Registered Social Landlords, which are organisations, such as Housing
Associations, that provide affordable housing to tenants throughout the United
Kingdom.

THFC funds itself through the issue of bonds to institutional investors and by
borrowing from UK banks and building societies and the European Investment Bank.
It therefore acts as an aggregating financial intermediary, so diversifying risk for
those who make funds available to THFC, and reducing the cost and standardising
the loan terms for those RSLs that borrow from it.