Sovereign plans 3,400 homes
Sovereign Housing Association has revealed ambitious plans to deliver 3,400 affordable homes over the next four years.
The 34,000-home landlord will complete more than 1,000 homes this financial year, with a similar number planned for 2013/14. Sites have been identified for 865 of the 1,064 homes due to be delivered this year with Sovereign saying it has ‘a reasonable pipeline of opportunities’ for the remaining 199.
Sovereign has grant funding from the Homes and Communities Agency for 1,856 homes as part of the 2011/15 affordable homes programme, with 1,397 of these being affordable (see box: In numbers). It will be funded partly through the development of what has been described as ‘a growing number’ of market rent properties.
‘Market rent represents a definite gap in the market, given the rising demand from people unable to buy their own homes,’ said Phil Stephens, development and commercial director at Sovereign.
Martin Huckerby, finance director at Sovereign, said that plans were already in place for 200 market rent homes, with that number likely to increase over the course of the association’s four-year plan.
Last year, Sovereign delivered 957 new homes, outstripping the 720 it had budgeted for. In 2010/11 it built just 622 homes.
‘This has been a very big year for the development team. It has been challenging given the economic climate and the massive reduction in central capital funding,’ added Mr Stephens.
Sovereign secured one of the larger grants - £31.5 million - to develop affordable housing as part of the HCA’s £1.8 billion programme.
Sovereign issued an own-name bond last month, raising an additional £250 million on the capital markets.
affordable homes planned over next four years
affordable homes for which Homes and Communities Agency grant has been awarded up to 2015
new homes built in 2011/12
money raised in bond deal May 2012