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A homelessness charity has announced plans to deliver 300 modular homes for young people across London and Greater Manchester.
Centrepoint, a charity for homeless people aged 16-25, will invest £15m on the scheme, which will see 300 homes delivered by 2021, with 86 homes being delivered by 2020.
The accommodation will be for young people who are ready to move on from the charity’s homelessness accommodation but are unable to do so because of high costs.
Rent will be capped at no more than a third of a tenant’s income during their tenancy, which can last up to five years.
Centrepoint will soon be tendering out to select a modular house builder and is already working with landowners to identify potential sites.
The move by Centrepoint follows a £40m scheme set up by several London councils that aims to build hundreds of new modular homes for the city’s homeless population.
Pan-London Accommodation Collaborative Enterprise (PLACE), is a not-for-profit company launched by councils including Lambeth and Tower Hamlets, set up to build 200 new modular homes in the capital.
Seyi Obakin, chief executive at Centrepoint, said: “To mark our 50th anniversary this year, Centrepoint is embarking on our most ambitious project yet to help young people into a home and a job.
“Lower benefit rates for under-25s, and a shortage of affordable housing in many areas means that even if they are in work, many of the young people we support cannot afford to move out of our services and in to a home of their own.
“This not only has a huge impact on their ability to focus on getting into work and achieving their potential, but it also means that we cannot house the next group of young people who need our support.
“Over the coming months we are looking forward to building new partnerships with landowners, potential funders, and politicians to turn these ambitious plans into reality for the homeless young people we support.”