A group of contractors, housing developers and investors have set up a £1 billion fund to deliver 10,000 homes on council-owned land across the UK
Kier Living, ‘alternative investor’ Cheyne Social Property Impact Fund and the Housing Growth Partnership – a joint venture between Lloyds Bank and the Homes and Communities Agency (HCA) – aim to deliver the new homes over a five-year period.
Under the model, the partnership will develop homes on local authority land, giving councils the option of delivering properties for sale or rent at discounted rates. Up to 50 per cent of each site will have affordable development opportunities.
According to the AJ’s sister title Construction News, the council would then work with the partnership to determine a suitable tenure mix for its area, without the need for grant funding. Lloyds will provide banking services and financing solutions.
The partnership will provide the local authority with an ’end-to-end’ development solution, including procurement, funding, site assembly, construction, sales and maintenance.
Kier Living executive director John Anderson said: ’Through this unique public-private sector partnership with experienced finance and development partners Kier, Cheyne and the Housing Growth Partnership, we are collectively offering an end-to-end solution to building much-needed new homes.’
Shamez Alibhai, head of Cheyne’s Social Property Impact Fund, added: ‘The long-term investment horizon of our socially conscious institutional investors means we are able to provide patient capital to work with Kier Living and the HGP in delivering a new socially inclusive, multi-tenure building model that helps alleviate the current housing crisis.’