Posts tagged affordable homes
Chief Secretary to the Treasury Danny Alexander and Housing Minister Mark Prisk have set out how two investment schemes will provide up to £10 billion of lending guarantees to businesses that want to build new affordable homes.
The ministers are publishing further details on the schemes that will use the Government’s fiscal credibility to provide property investors with low-cost finance so they can deliver new private rented or affordable housing.
Both schemes were revealed in September 2012 to kick-start private investment in the housing sector, which will create thousands of new homes and jobs, boosting growth across the country.
The guarantees will support new-build projects, located in the United Kingdom. The private rented sector guarantee will back a variety of options to invest in new homes for private rent, from building new homes to converting existing commercial spaces into rental properties.
This will make vital finance available for projects in any part of the UK that have a minimum value of £10 million. The new homes will have to remain in the private rented sector until the money is paid back.
Following extensive consultation with the housing sector, the government is setting out eligibility requirements and how the guarantees will be structured, in the scheme rules for affordable housing and the scheme rules for private rented housing. It is also publishing an invitation to tender for the running of the schemes.
Chief Secretary, Danny Alexander said: “The announcement today shows we’re getting on with delivering an ambitious guarantee programme, giving projects across the UK a unique opportunity to take advantage of the strength of the UK’s balance sheet, allowing businesses and homeowners to benefit from lower borrowing costs and more affordable housing.
“We must build on this momentum to boost vital investment in the housing sector, creating jobs, supporting small businesses and building the foundations for growth across the country.”
Housing Minister Mark Prisk said: “The housing guarantee schemes will help to get spades in the ground, create jobs, and establish new business models that will ensure the private rented sector continues to grow and more affordable homes are delivered.”
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The scheme, partly funded by the Homes and Communities Agency, will see the building of 768 new homes by 2015. The developments will include family homes, bungalows for older people as well as properties for private sale and for social rent.
Businesses and jobseekers are set to benefit from the scheme which is expected to generate more than £70 million worth of construction work and create hundreds of new jobs with local employers.
The three developers have signed construction pledges to work with local suppliers and the council’s Think Local and ‘Find It In Sandwell’ initiatives which will boost employment and help people in the trades.
Councillor Simon Hackett, cabinet member for housing, said: “We’re pleased to announce partners who will help turn our vision for the future of housing in Sandwell into reality.
“We’ll be providing residents with an excellent range of affordable homes for local people to buy, part-own and rent and consult with local people about the new homes we plan to build.”
Assad Hamed, area manager for the Homes and Communities Agency, said: “We know through working closely with Sandwell Council that increasing the supply of affordable homes in the borough is a big priority and we are pleased our investment is supporting this.
“Getting all three schemes up and running will be a major boost for local communities in Sandwell as they will see lots of activity happening across the borough and will benefit from the impact of local jobs and economic growth.”
House builders will have the chance to put their bids forward to deliver major building work which could boost the London economy by £2 billion and create new jobs in the construction industry.
According to the Mayor, injecting such significant investment in the housing market could contribute £1 billion worth of construction projects across the city.
The Mayor has said that all ‘reusable investment’ from this funding boost will be reinvested for the building of more affordable homes over the next decade.
Motor Johnson said “To improve the housing choices of those who work to make this city the fantastic place that it is, I am opening up the market, cutting red-tape and injecting £100million worth of investment to stimulate supply.
“The programme we are announcing will not just unlock the door to home ownership for thousands more Londoners, it will give a welcome shot in the arm for jobs in the capital’s construction industry and spur wider economic growth too.”
The first homes are expected to be available for sale in early 2013 with completions ranging up until March 2016.
Barratt London and L&Q sign major partnership to redevelop Fulham Wharf
Barratt London have announced that, in partnership with L&Q, it has acquired an 8.5 acre site in Fulham from Sainsbury plc. The site, which is on the north bank of the Thames, has a gross development value of £420m with planning permission for 463 riverside apartments and a new Sainsbury’s supermarket.
This is the third major JV Barratt is undertaking in conjunction with L&Q in London which in total will supply more than 1,000 homes in the Capital. Fulham Wharf follows on from the 50/50 JVs at the Ashburton regeneration project adjacent to the Emirates stadium in North London, and the 27 story Alie Street project on the eastern edge of the City.
The Fulham site has been bought on an unconditional basis with planning permission. In addition to the supermarket and housing, it will include restaurants, cafes and bars, a crèche, a gym, landscaped gardens, a riverside walk and the use of a jetty to create an ecological area for riverside wildlife.
The development will be delivered in two phases with phase one comprising the construction of the new 9,395m2 supermarket for Sainsbury’s together with 267 residential units of which 52 will be shared ownership. The residential blocks wrap around the new supermarket as well as extending above the building and range from 2-17 storeys. Phase two comprises the demolition of the existing superstore and the construction of 196 units, including 14 social rented homes.
Alastair Baird, Regional Managing Director of Barratt London said: “We are delighted to have secured this high profile project on the west London water front. Barratt has a strong track record of delivering complex London schemes including Dalston Junction and Canada Water and this gave us a strong competitive advantage. Our London portfolio is expanding fast – we now have over 3,000 units under construction across the Capital in 17 boroughs providing homes ranging from £120,000 to £3.5m.”
Jerome Geoghegan, Group Director of Development and Sales at L&Q, said: “We are delighted to be working in partnership with Barratt London. We are now working together on three high profile sites that will deliver over 1000 new homes across the Capital.”
The scheme has been designed by Lifschutz Davidson Sandilands and construction is scheduled to start this month.
Barratt London is now working on 21 sites across London including Maple Quays at Canada Water, Queensland Road, Arsenal and the Court House in Westminster.
What is your reaction to the major regeneration projects which will pave the way for more employment opportunities for people in the building engineering sector? Let us know what you think by commenting here or raising your voice on our Facebook and Twitter page.
One of the largest providers of affordable housing in the South of England, Sovereign Housing Association, has announced it will build more than 3, 000 new homes over the next four years, paving the way for jobs in the building construction industry.
The ambitious plan will see 1, 064 new homes built by the end of this financial year, 865 of which have been already identified, the housing association confirmed last week. Under Sovereign’s new development strategy at least 276 of the new homes will be for affordable home ownership, forecasting a similar number of homes to be completed in 2013/14.
Development and Commercial Director at Sovereign, Phil Stephens, said: “The top priorities of our development strategy are to ensure that we deliver the HCA Affordable Homes Programme and to play our part in achieving Sovereign’s aim of reaching 50,000 homes by 2015,”
“Our recent successful bond issue has given us the financial strength and flexibility to continue delivering a substantial programme of new homes in our core operating areas in the coming years.”- added Mr Stephens.
It was revealed that Sovereign’s development will include a significant number of shared ownership homes as well as a growing number of market rent properties in key locations.
Mr Stephens commented that there is a definite gap in the market rent properties due to the rising demand from people unable to buy their own homes.
He said: “We will be looking to build on the positive experiences we have had so far letting homes at market rates in the West Country, and not only develop a broader portfolio of properties, but also diversify our revenue streams to enable us to continue providing affordable homes into the future.”
What’s your reaction to Sovereign’s announcement to build 3,000 new homes in the next four years? How do you think this revelation could help your business? Let us know by commenting here or raising your voice on our Facebook page.
More than 54, 000 homes were built in Mayor’s first term, exceeding Mayor Johnson’s pledge to provide 50, 000 affordable homes for Londoners over the four-year period of his term. In the past year 16,000 homes were built in London, which means Boris Johnson has exceeded his initial target by 4, 000 homes.
The government has given new powers to Mayor’s office in order to boost housing delivery in the capital. Mr Johnson has now pledged to build up to 100, 000 affordable homes with potential to create 100, 000 new jobs
The Mayor of London, Boris Johnson, said: “Four years ago I said that if we were going to improve Londoners’ lives it was going to be essential that we boost affordable housing supply in the capital. The hard work is by no means over but despite some of the most challenging economic conditions for decades we have delivered more than 54,000 affordable homes over the past four years.
“By 2015 we will have delivered over 100,000 affordable homes for London, which will give a vital boost for jobs and the wider economy, as well as providing decent places that people actually want to live in.”- added Mr Johnson.
Share your experiences about finding affordable homes in the London area? What is your reaction to the Mayor’s plan to deliver more affordable homes for Londoners? Let us know what you think by leaving a comment here or raising your voice on our Facebook page.
The Homes and Communities Agency (HCA) has granted £70 million to local authorities, housing associations and other home providers in the UK to bring empty properties back into use. This will deliver more than 5,600 new affordable homes, boosting the building construction industry and creating new jobs.
The £70 million investment will fund the refurbishment of properties which have been standing empty for a minimum period of 6 months. There are currently 700,000 empty homes in the UK that are not in use. The Empty Homes Programme, which is part of the HCA’s main Affordable Homes Programme 2011-15, will bring a considerable number of those homes back to live.
Chief Executive of the HCA, Pat Ritchie, said that the issue of providing more affordable homes across the country will continue to be a priority for the government and the HCA.
Mr Ritchie said: “One of the HCA’s key aims is to maintain a supply of affordable homes. With thousands of homes and properties lying empty across UK, we have a leading role to play in tackling the issue of empty homes blighting our communities, and this funding is welcomed. The high level of interest we received by providers bidding to participate in this programme demonstrates just how important of an issue this is.
“I am pleased therefore to be able to confirm our funding allocations for this spending period. Every part of the country is set to benefit, and we will be continuing to work closely with our local partners to maximise the allocations and deliver value for money in those areas where the need is greatest.”
The government has allocated in its Comprehensive Spending Review a total investment of £100 million for the Empty Homes Programme. The remaining £30 million will be made available exclusively for community led groups at a later stage of the scheme.
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