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Council extends loan to ALMO-owned housing company as delivery exceeds forecast
Stockport Council has laid out plans to extend a rolling loan facility to its housing company after it achieved a 25% increase in delivery compared with original forecasts.
The council’s cabinet is being asked to make a further £14.9m available to Viaduct Housing Partnership (VHP), which is owned by ALMO Stockport Homes, in order to facilitate the delivery of an additional 471 homes by 2025.
Stockport Homes has to date delivered 1,006 homes via a £77m loan facility agreed by the council in 2016, the year VHP was established.
This marks a 25% increase on the 806 homes it originally forecast would be delivered through the loan facility, which is now expected to reach its cap within 2020/21.
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According to the council’s report, which will be considered by cabinet tomorrow, reasons for the spike in delivery include additional Homes England grant being secured, a number of larger schemes coming forward and the success of the sales programme.
In addition to the homes delivered through VHP, the council also aims to borrow £62m via its Housing Revenue Account (HRA) to deliver 509 council homes over the next five years.
Last year Inside Housing revealed that councils in England were planning to collectively quadruple their housebuilding over the next five years and have plans to deliver around 80,000 homes.
Of the 80,000 homes, 54% were set to be delivered through the HRA, 35% through housing companies and 10% through investment from local authorities’ general funds.
In 2018, the HRA borrowing cap, which limited how much money councils were able to borrow to build new homes, was lifted by Theresa May’s government.
As a result a raft of councils, including Swansea, Stoke-on-Trent, Barnet, Bristol, Ealing and Darlington, have all announced plans to borrow more to increase housing delivery.
Stockport Council currently aims for a 50-50 split in terms of homes built through the HRA and homes built via loans to Stockport Homes.
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Inside Housing Development Summit 2020
Inside Housing is pleased to join forces with Homes England and the LGA to introduce the Inside Housing Development Summit.
Taking place on 27-28 April 2020, the summit will gather together local authorities, housing associations, developers, fund managers and advisors for a Chatham House style event focussed on making new connections and exploring new delivery models.
The summit will take place over 28 hours, starting with an afternoon plenary on 27 April, an exclusive development site study tour to Northstowe, England's largest new town since Milton Keynes, followed by a business dinner.
The second day will provide opportunities to network with a range of senior Homes England and LGA staff including Nick Walkley, chief executive of Homes England and Mark Lloyd, chief executive of LGA.
You’ll also meet with leaders from across the development ecosystem and take part in group discussions to help you connect and explore new opportunities. All accommodation and meals will be provided within the fee.
Places for each stakeholder group are limited to ensure a balanced mix of participants and to make sure you leave with the relationships and leads you need.
Click here to book your place or for more information
