Housing market package could fund development
Funding designed to shift developers’ unsold stock to housing associations could result in further construction, it has emerged.
The Housing Corporation has said it is considering a bid for part of its £200 million pot that would ‘stimulate further construction activity that might not otherwise have proceeded’.
The 700 home bid comes from developer Bloor Homes. The house builder has already agreed the sale of 335 homes through the scheme, in a £13 million deal with Sanctuary Group.
David Bennett, Sanctuary Group chief executive, said the deal would allow Sanctuary ‘to provide more affordable rented housing and will benefit all the parties involved including, most importantly, those in need of new homes’. Homes will be made available in 19 sites across England.
Richard Hill, director of investment at the corporation, said: ‘The successful outcome of this initial bid will allow us to move on and consider bids to build out schemes which may not otherwise have gone ahead – maintaining affordable housing supply and retaining capacity within the construction industry.’
Prime minister Gordon Brown announced the £200 million in May. It has been brought forward from the corporation’s £8.4 billion affordable housing budget.
The corporation is distributing the cash through a ‘national clearing house’ that brings together developers with unsold stock and associations who need more affordable housing.
Since July it has spent £70 million, bringing more than 2,000 homes into the affordable housing sector. The government has said it will make more money available if there is sufficient demand.
