New Era saviour Dolphin to set up housing association

The Dolphin Square Foundation, an independent provider of affordable housing, is planning to set up a registered provider arm next year.

Jon Gooding, chief executive of Dolphin Square, said it is planning the move to take advantage of cheap funding and financial advantages only available to housing associations.

It is working to develop 1,000 homes for low and middle income Londoners within commuting distance of Westminster by 2020, and currently owns 150 with 350 in the pipeline.

Most of the homes will be at intermediate rents, with some social rent properties to be owned by the housing association.

The main organisation will continue to operate as a charity, with a not-for-profit housing association existing within its structure and providing management services to all its homes.   

Its bid is currently at the second stage of consideration by the Homes and Communities Agency (HCA) having first been lodged last summer.

‘We could see that [housing associations] are a more attractive development partner for major private sector developers,’ said Mr Gooding.

‘They also have access to funding and finance on terms that wouldn’t be available to us, and are exempt from the Community Infrastructure Levy [a development tax imposed when planning permission is granted].’

Mark Kent, presently operating director of Triathlon Homes which is working on the homes in the Olympic Park, will join as managing director of the new association.

The charity made national headlines last month when it agreed to buy the New Era estates in Hoxton from a US investor which had planned to raise rents and evict the tenants.

The purchase followed a huge media campaign from the residents, supported by comedian and activist Russell Brand. Dolphin Square is currently agreeing a new affordable rent arrangement with the tenants.

The charitable trust is hoping to raise around £160m in additional finance to complete its development ambitions.