HCA registers first builder

The £1.5 billion turnover company has registered a new wholly-owned subsidiary called Linden First with the Homes and Communities Agency.

Galliford Try has already received £17 million from the HCA to build 1,485 affordable homes under the 2011/15 affordable homes programme. But becoming a registered provider will enable it to retain and manage publicly funded assets itself.

Linden First will develop homes for shared ownership and shared equity and fund it by using part of its HCA pot. It will build 180 homes initially.

Stephen Teagle, managing director of Galliford Try, said having a registered provider arm will enable the company to be better placed to take advantage of changes to government policy, including future changes that could affect registered providers.

Mr Teagle said: ‘This gives us the flexibility to respond to policy developments.’ He added the move would also enable land to be transferred in a more tax-efficient way.

Any risks to the social housing assets will be ‘ring-fenced’. This means other parts of the business will not be able to use the taxpayer-funded homes as loan security or sell the homes. The regulator is currently drawing up plans to prevent for-profit providers from asset-stripping.

Mr Teagle has not yet revealed how much Linden First is expected to grow as the business plan is yet to be finalised.

A spokesperson for house builder Barratt Homes ruled out setting up as a registered provider as it doesn’t fit the firm’s business model.

The Housing and Regeneration Act 2008 allowed for-profit housing associations for the first time and 22 businesses have since registered.

Sandeep Singh, managing director of new for-profit provider Major Housing Association, is attempting to create a trade body for for-profits, and hopes to organise a meeting of for-profits in the next couple of months.