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Major house builder launches new shared ownership product with for-profit provider
Crest Nicholson has announced it will introduce a shared ownership product for sale in partnership with for-profit provider Heylo.
The product is part of Heylo’s Home Reach scheme, which allows housebuilders to turn private homes into shared ownership properties.
Under the scheme, buyers will be able to purchase a share in the property, with the remaining interest being owned by Heylo, which will act as the landlord.
Heylo was established in 2014 as a for-profit developer, specialising in shared ownership properties. It works in partnership with over 50 developers in England.
The initiative is part of a strategy from Crest Nicholson to introduce more affordable homes that address changing customer needs.
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Earlier this year, the national housebuilder announced it was launching a new stand-alone business called Crest Nicholson Partnerships and Regeneration, focusing on the affordable homes market. The listed builder also said it expected to increase bulk sales to account for between 15% and 20% of its revenue in future, compared with 5% to 10% historically.
Bulk sale deals by house builders are often struck with housing associations, whereby stock is sold off at a discount to help boost builders’ financial performance.
Tom Nicholson, chief operating officer at Crest Nicholson, said: “The launch of our partnership with Heylo is an exciting step for the business.
“Home Reach will ensure more people will be able to purchase a Crest Nicholson home. Part buy-part rent is a growing phenomenon in the housing industry.
“This model of home ownership forms an important strand to our proposition and enables us to better respond to the government’s housing targets, allowing us to provide much needed homes across the country.”
In January, Crest Nicholson reported a 39% drop in annual profits as sales were hit by a sluggish housing market sparked by Brexit paralysis.
Wayne Bennett, national director of Home Reach for Heylo, said: “We’re proud to be partnering with Crest Nicholson to offer Home Reach to their customer base.
“Part buy-part rent is an opportunity for buyers to take a smaller step onto the housing ladder, with the facility to ‘staircase’ up to full ownership, giving buyers the flexibility of owning their own home at a fraction of the cost.”
